When reviewing the answer to the example, make note of the
following:
- Look how the cash transactions are reflected with opposite entries
in the corresponding account. This is the basis of double-entry
bookkeeping.
- Also notice how each account is balanced off. The Balance Forward
amount makes the total of the debits equal the credits
(a balancing figure). Whenever the total
of an account is referred to, it means the Balance Forward amount.
If the Dr (left) side is greater than the Cr (right) side, it is a Dr
balance (or vice-versa).
Double
Entry & Balancing
