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Double-entry bookkeeping records both sides of a transaction

Equal debits and credits preserve the accounting equation.

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Output
Updated accounts that retain an internally checkable balance
Input
A business buying equipment for cash
Relationship

What connects the input and output?

The transaction increases the equipment asset account and decreases the cash asset account by equal amounts. The paired entries keep total debits and credits balanced.

Sources

1
  1. openstax.org: Double-entry bookkeeping records both sides of a transactionopenstax.orgCC-BY-4.0

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