The theoretical basis of debit and credit bookkeeping method is

The theoretical basis of debit and credit bookkeeping method is: assets = liabilities+owners' equity.

A double-entry bookkeeping method with borrowing as the bookkeeping symbol, reflecting the increase and decrease of economic business. The words such as "borrowing" and "lending", which were originally limited to recording creditor's rights and debts, can no longer summarize all the contents of economic activities. The content it represents should include the ins and outs of all changes in the capital movement in economic activities. They gradually lost their original literal meaning and became a simple bookkeeping symbol, which only indicated the direction of bookkeeping and became a specialized accounting term.

Under the debit and credit bookkeeping method, the left side of the account is called debit and the right side is called credit. The debit and credit records of all accounts increase and decrease in opposite directions, that is, one party's registration increases and the other party's registration decreases. Which party's registration increases and which party's registration decreases depends on the nature of the account and the nature of the economic content recorded in the account.

Usually, the increase of assets, costs and expenses accounts is recorded as "debit" and the decrease is recorded as "credit"; Increases in liabilities, owners' equity and income accounts are recorded as "credits" and decreases as "debits".

Its advantages mainly include the following aspects: it is beneficial to analyze economic business and strengthen economic management. Conducive to preventing and reducing accounting errors; Account setting is more flexible; Conducive to accounting computerization.