Glossary
Double-entry accounting
A method where every transaction is recorded as equal and opposite entries against at least two accounts, so the books always balance.
Each financial event produces balanced debit and credit lines. A wallet funding of 100 USD debits a clearing account and credits the customer's wallet account; a 2 USD fee credits a revenue account and debits the wallet. The total of debits always equals the total of credits.
The practical benefit in transaction platforms is detectability: if the books do not balance, something is structurally wrong and can be caught automatically rather than discovered during a customer complaint.
What it covers in practice
- Every movement affects at least two accounts
- Imbalance is a detectable system error
- Maps cleanly onto general-ledger integration