For every transaction:

1. One or more accounts are debited (increased or decreased based on the type of account).

2. Simultaneously, an equal amount is credited to one or more other accounts.

This ensures that the accounting equation (Assets = Liabilities + Owners’ Equity) stays balanced. The total dollar value of debit entries always equals the total of credit entries. This system is universally used, regardless of whether records are manual or computerized​​.