what is an example of double entry 
an example of double entry accounting would be if a business took out a 10 000 loan and the loan was recorded in both the debit account and the credit account the cash asset account would be debited by 10 000 and the debt liability account is credited by 10 000 under the double entry system both the debit and credit accounts will equal each other the bottom linethe double entry accounting method has many advantages over the single entry accounting method first and foremost is that it provides an organization with a complete understanding of its financial profile by noting how a transaction affects both credit and debit accounts it also makes spotting errors easier because if debits and credits do not match then something is wrong lastly it makes preparing financial statements easier 