Double-entry bookkeeping
In Arabic القيد المزدوج
The system in which every transaction is recorded in at least two accounts, with total debits equal to total credits.
In plain words
Recording both sides of every transaction means the books check themselves. A sale raises receivables and revenue together; if one side is missing, the totals stop agreeing and the error shows.
Assets and expenses rise with a debit; liabilities, equity and revenue rise with a credit. Each journal lists its lines, and it can be posted only when its debits and credits are equal.
The common mistake is believing a balanced journal is a correct one. Debiting the wrong expense account still balances, so the account chosen matters as much as the amounts.
- Debit receivables
- SAR 1,150
- Credit sales
- SAR 1,000
- Credit VAT payable
- SAR 150
- Debits and credits
- SAR 1,150 = SAR 1,150
In Axon Suite
How Axon Suite handles it
In Axon Suite invoices, payments and stock movements post their own journals, and a period cannot be closed while its debits and credits differ.
Feature
Every journal names its source
Every automatic journal names the document that posted it, and every invoice, bill and credit note lists the stock movement and journals it raised. One click takes you from one to the other.
Open: Every journal names its source