The modern system of accounting is called the double-entry system because a debit to one account is balanced by a credit to another account.

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The double-entry system of accounting is based on the principle that every financial transaction has equal and opposite effects in at least two different accounts. One account is debited with a certain amount, while another account is credited with an equal amount. This ensures that the accounting equation (Assets = Liabilities + Equity) remains in balance at all times. Therefore, a debit to one account is always balanced by a credit to another account, making it a double-entry system.

The Modern System of Accounting Is Called the Double-Entry System