What is the advantage of recording every transaction twice in two separate accounts instead just recording it once?
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Money doesn’t come from no-where, nor does it just disappear. It’s transferred. The 2 entries are your “From” and your “To” records for each transfer.
Value was transferred from your bank account, to the inventory when you bought more stuff to put on the shelves to sell.
Value was transferred from your accounts receivable, to your bank account when someone paid their bill.
Value was transferred from your bank account, to your employees’ when you paid them their salaries.
Value was transferred from your inventory, to your accounts receivable when someone bought stuff and was invoiced, due in 30 days.
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