ABSTRACT
The Double-Entry Set of accounts (e.g., the Profit and Loss account) are considered as the personal accounts of the matter of the Business. The Double-Entry Set represents essentially the same facts, and leads to the same final result as the Single-Entry Set; but the point of view is totally different, and the mode of getting at the result altogether unlike. Another characteristic of the Double-Entry Set of accounts is that they all relate to Capital or to increase or lessening of Capital—i.e. Profits and Losses. Every transaction that increases or lessens Final Net Capital must be debited in a Single-Entry account, and credited in a Double-Entry account, or vice versa. The main principles of Double-Entry remain the same whatever books are used. The one indispensable book is the Ledger, which contains the essence of all the others collected and classified for ready reference.
