kept by the company, which used the double-entry method, and each. shareholder had a separate account. Every sale or transfer of company. stock between shareholders was entered twice: as a debit under the ac- count of the seller and as a credit under the account of the purchaser.
Bookkeeping is the technique of recording financial transactions as they occur so that summaries may be made of the transactions and presented as a report to the users of accounts. The doubleentry bookkeeping technique applies to the recording of transactions in ledger accounts.
4 Doubleentry bookkeeping – one transaction, two parts. If the motto for single entry is 'each financial transaction goes to a financial account', the motto for doubleentry is 'each financial transaction goes to two different financial accounts.'