The "double entry" stems from the fundamental accounting equation: assets = liabilities + equity. Whatever you have is either yours or borrowed. Change in one m

The "double entry" stems from the fundamental accounting equation: assets = liabilities + equity. Whatever you have is either yours or borrowed. Change in one must have an equal change in the other to keep the equation balanced, otherwise you would lose track of how much you own and how much you owe. For example, you have £200 in cash. £100 was your own earnings, £100 your mum gave you to pass on to someone. In pure single entry system, Cash account would have £200, with no distinction between the two. Double entry tracks ownership explicitly: £100 would be recorded in Equity and £100 in Payables.