What is the theoretical basis of the debit and credit method of bookkeeping

The theoretical basis of the debit and credit method is mainly the following three points:

1. Assets are equal to liabilities plus owner's equity

The theoretical basis of the debit and credit method is the accounting constant, that is, assets = liabilities + owner's equity. This equation is the basis of the debit and credit method, because assets and liabilities are opposite in nature, one side increases, the other side will decrease. By using the debit and credit method of accounting, the true picture of economic transactions can be clearly reflected.

2, there must be borrowing, borrowing and lending must be equal

The second theoretical basis of the debit and credit method is "there must be borrowing and lending, borrowing and lending must be equal". This principle ensures the accuracy of accounting entries. Whenever an economic transaction occurs, debits and credits are recorded according to this principle, and the amounts debited and credited are always equal.

3, the closing balance remains constant

The third theoretical basis for the debit and credit method of accounting is that the closing balance remains constant. Under the debit and credit method, each account should maintain the same balance at the end of the period as at the beginning. This principle ensures continuity and consistency of account balances and helps provide accurate financial information.

Importance of the debit and credit method

1. Provide accurate financial information

Debit and credit method is a scientific method of bookkeeping, which is able to clearly reflect an enterprise's financial position and operating results by using the two symbols of debit and credit to record the economic transactions and events.

Compared with other bookkeeping methods, debit and credit bookkeeping records more accurately the changes in assets, liabilities and owners' equity of an enterprise, thus providing more accurate and comprehensive financial information for the enterprise's operators and investors.

2, help to improve the management level

Debit and credit bookkeeping is not only a bookkeeping method, or a management tool. It can record and analyze the economic transactions and matters to help business operators better understand the business situation, grasp the management data, and provide a scientific basis for business decision-making.

3, to adapt to the needs of the modern business community

Debit and credit bookkeeping is an internationally recognized method of bookkeeping, is widely used in various industries and fields. Mastering the debit and credit bookkeeping method can help enterprises better adapt to the needs of the modern business community, with international standards, and improve the international competitiveness of enterprises.