What does double-entry bookkeeping require for each transaction?

Double-entry bookkeeping is a fundamental accounting method that requires each transaction to be recorded in at least two accounts. This approach is based on the accounting equation, which states that assets equal liabilities plus equity. By ensuring that every transaction affects two accounts, one account is debited and another is credited, maintaining the balance in the accounting equation.

For example, when a business makes a sale, it increases its cash or accounts receivable (debit), while simultaneously increasing its revenue (credit). This dual effect helps ensure accuracy and provides a check on the financial records, making it easier to detect errors and fraud.

The necessity of recording transactions in at least two accounts reflects the comprehensive nature of double-entry bookkeeping, providing a clearer financial picture for businesses and enabling better financial management.