Accounting Lesson: Double Entry

Every transaction has two equal sides: debit and credit. Total debits always equal total credits.

Transaction	Debit	Credit
Cash sale of 100	Cash 100	Sales 100
Credit sale of 100	Accounts receivable (customer) 100	Sales 100
Receiving payment from a customer	Cash	Accounts receivable
Buying goods on credit	Inventory	Accounts payable (vendor)
Paying rent	Rent expense	Cash or bank

💡 Cpos creates these entries automatically from invoices and vouchers. You only need a manual entry for special cases.