Denis Defreyne

Double-entry bookkeeping is accounting’s law of conservation of energy

Up: Finance

Double-entry bookkeeping confused me (especially with its credits and debits difference) until I figured that

  • income accounts are proxy for other entities that give you money (and are thus always negative).
  • expense accounts are proxy for other entities that you give money to (and are thus always positive).
Note last edited October 2026.
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