What is double-entry bookkeeping?
There are many business transactions that must be recorded in separate accounts, for example: sales, purchases, debts, expenses, etc.
Each transaction is recorded in a separate account – cash account, the liabilities account. The bookkeepers use a system that records two aspect of every transaction – double-entry bookkeeping.
Every transaction is both a debit – a deduction – in one account and a credit – an addition – in another. For example, if a company buys raw materials for production, it debits its purchases account and credits the supplier’s account.
Each account records debits on the left and credits on the right. The total debits should always equal the total credits. Accountants and bookkeepers call these accounts T-accounts, because they look like a ‘T’ letter - look at the examples below.
Double-entry bookkeeping – zasada podwójnego księgowania
An account - konto
A debit – ‘winien’ – lewa strona rachunku rozliczeniowego, obciążenie
A deduction - potrącenie
A credit – ‘ma’ – prawa strona rachunku rozliczeniowego, uznanie
An addition - dodawanie
An asset – składnik aktywów
A liability – zobowiązanie
To increase – wzrastać
To decrease – zmniejszać się
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Maintain, Strengthen, Foster, Build up, Cement, Cultivate, Encourage, Establish, Improve, Promote
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The company strengthened its sales force after the merger.
We are improving relations with customers thanks to better communication.
They always try to maintain proper relations with their suppliers.
– mean that the relationship was disrupted somehow and now we want to bring it back to the previous state.
We managed to restore our relations with the customer who was dissatisfied with our delay in delivery.
Endanger, Sour, Damage, Disrupt, Jeopardise, Sever, Undermine, Strain – all mean more or less that we don’t do much or enough to keep the relationship or even do something negative to damage it.
A strike at our factory disrupted production for several weeks.
Poor after-sales service undermined relations with customers.
His lack of negotiation skills jeopardised the deal.
Cordial, Healthy, Harmonious, Good, Strong, Friendly
We have very healthy mother-daughter relationship.
Their relations were rather cordial.
Strained, Stormy, Broken, Failed, Rocky, Uneasy, Volatile
Their relations were stormy after the argument they had the other day.
Britain has rather volatile relations with EU.
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