Double entry -- The system of bookkeeping by which two entries, one credit and one debit, are made

of every transaction. In double entry a day-book, journal and ledger are the essential books, although a cash-book, bill-book, stockbook, invoice- book, etc., are usually added. By the double entry system every transaction is made to appear on the record as both debtor and creditor by observance of the principle that, in every instance, the thing obtained is debtor to the thing given and the thing given is creditor of the thing obtained.

The term marshalling means the order in which assets and liabilities are stated on the balance sheet as the balance sheet exhibits the financial position of a concern even to a non technical observer. It is of great importance that the different assets and liabilities should be arranged in the balance sheet on certain principles.