The double-entry bookkeeping system requires two separate entries to maintain the balance shown in the basic accounting equation.

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The double-entry bookkeeping system is based on the principle that every financial transaction has equal and opposite effects in at least two different accounts. As a result, two separate entries are required to maintain the balance shown in the basic accounting equation (Assets = Liabilities + Equity). This system ensures that the books of accounts are always balanced and accurate.

The Double-Entry Bookkeeping System Requires Two Separate Entries to Maintain