Every transaction, amounts must be recorded in a minimum of two accounts.

To illustrate double entry, let's assume that a company borrows 10000tk from its bank. The company's Cash account must be increased by 10000tk and a liability account must be increased by 10000tk. To increase an asset, a debit entry is required. To increase a liability, a credit entry is required. Hence, the account Cash will be debited for 10000tk and the liability Loans Payable will be credited for 10000tk.