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Example of double-entry bookkeeping

Here you can see an example of how double-entry bookkeeping works, i.e. when you enter a business transaction in both debit and credit. The accounts are selected from the BAS chart of accounts.

Accounting example: Bank loan

[1930]20 000[2350]20 000

A company has been granted a loan and has received the money

Business account [1930] increases with SEK 20,000 when it is debited.
Other long-term liabilities to credit institutions [2350] increases with SEK 20,000 when it is credited.

The sum of the debit and credit balances, meaning there are equal amounts in both debit and credit.

If the amounts are not equal

If the amounts are not equal, i.e. if the debit and credit do not balance, an error has occurred somewhere and you cannot save the entry.

If we had accidentally entered SEK 2,000 in debit instead of SEK 20,000, the accounts would not have balanced. The balance between debit and credit would then have shown a difference of SEK 18,000.

To find the error, you usually go to the supporting document, such as the receipt, and check the figures.