Glossary
Double entry
The method of recording every transaction twice, once as a debit and once as a credit, so the books always balance.
What it means
A system of book-keeping in which each transaction is recorded with equal debit and credit entries in the ledger.
Example
Paying rent in cash: debit rent expense, credit cash, two equal entries.
Why it matters
Double entry keeps the accounting equation balanced and lets a trial balance check the books.
In practice
Double entry is the method used to record every transaction in the ledger. Each one has a debit and an equal credit.
Take paying RM600 rent by cheque. The rent account is debited RM600 (an expense grows) and the bank account is credited RM600 (an asset falls). Because each debit equals a credit, total debits across the ledger equal total credits. The trial balance later checks this.
Students often confuse double entry with the trial balance. Double entry is the method used to write up each transaction as it happens. The trial balance is a one-off list of balances taken afterwards to test that the method was applied correctly.
Double entry also follows the dual aspect concept. Every transaction affects at least two accounts, showing both what changed and where the value came from or went to.
If you are unsure which account to debit and which to credit, we can help. One of our teachers can go through a set of transactions with you until the pattern is clear. Book a trial class.
Related terms
Syllabus reference: Cambridge 0452 and 0985, syllabus for 2027 to 2029, sub-topic 2.1 The double entry system of book-keeping (page 12).
Definitions here are general accounting explanations for study. For your board's exact wording, see its official syllabus via Sources.
Need double entry explained properly?
Tell us your child’s year and board on WhatsApp and we will suggest a first lesson. One-to-one and online, from RM75/hr.
One-hour paid trial · Same-day reply