Double Entry Accounting is a methodology where every financial transaction was recorded in at least two accounts, ensuring the balance and accuracy of financial record-keeping. In that system, for every entry there was made in one account, there was a corresponding and opposite entry in the other, reflecting the impact of each transaction.
The relationship of Double Entry Accounting with the Accounting Equation (Assets = Liabilities + Owner's Equity) is fundamental. Every transaction impacts this equation in a way that always maintains balance. For instance, when assets increase, liabilities