Double entry rule

Before we embark on our accounting journey, it is important to know why it is important to study accounting! Accounting is basically a mathematical way to record events that had taken place. For example, when a business engaged a buyer to purchase a vehicle costing $80,000 by cheque, it will be a hassle to record this in the books:

Example: On 30 June 2016, business bought a vehicle $80,000 by cheque.

Therefore, it will be easier to record the transaction in their respective accounts.

Example: Motor vehicle +$80,000
                Cash at bank    -$80,000

These two accounts that were adjusted reduces the complexity of recording events that had happened. (+) to the Motor vehicle indicates that there are more vehicles and the only situation that causes a motor vehicle account to increase would be the buying of one unit.
(-) in cash at bank would indicate that this purchase was made through the bank account.

Hence, it is important to note that when an event had taken place in the business. It is a must to identify TWO accounts that you want to (+)/(-).