Discuss about the purpose of the double entry framework


Response to the following problem:

You are a public accountant with many small business clients.

During a recent visit to a client's business, the bookkeeper approached you with a problem. The columns of the trial balance were not equal. You helped the bookkeeper find and correct the error, but believe you should go one step further.

What information can you tell your clients about the purpose of the double entry framework, the importance of maintaining the equality of the accounting equation, errors that might cause an inequality, and suggestions for finding errors?

 

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Accounting Basics: Discuss about the purpose of the double entry framework
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