The theoretical basis of double entry bookkeeping is the accounting equation of "assets = liabilities+owners' equity". According to the accounting equation, any economic business will cause at least two increases or decreases between assets and equity, and the amount of increase or decrease is equal. Therefore, every economic transaction can be recorded in two or two related accounts with the same amount. This kind of bookkeeping faithfully reflects the objective connection of economic things and is a scientific bookkeeping method.

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