Financial Services

The first "golden rule" of bookkeeping is based on the system used by virtually all businesses globally: The Dual Aspect Concept, better known as the rules of the Double-Entry Bookkeeping System.

This rule is: For every business transaction, there must be two equal and opposite entries.

This ensures that the fundamental accounting equation remains balanced: $$\text{Assets} = \text{Liabilities} + \text{Owner's Equity}$$

Why This Rule is Golden

Ensures Accuracy: By requiring two entries (a Debit and a Credit) for every transaction, the system acts as a continuous self-check. If your total Debits don't equal your total Credits, you know immediately that an error has been made.

Provides a Complete Picture: It tracks the source of the funds and their destination. For example, when you buy new equipment for cash, you don't just record the increase in the Equipment account; you also record the corresponding decrease in the Cash account.

Foundation for Statements: This rule is what allows accountants to create reliable financial statements. The Balance Sheet, in particular, relies entirely on the fact that all transactions have maintained the equality between assets and claims against those assets (liabilities and equity).

• Avoid scams by acting locally or paying with PayPal
• Never pay with Western Union, Moneygram or other anonymous payment services
• Don't buy or sell outside of your country. Don't accept cashier cheques from outside your country
• This site is never involved in any transaction, and does not handle payments, shipping, guarantee transactions, provide escrow services, or offer "buyer protection" or "seller certification"