The purpose and goal of double-entry bookkeeping are to enter financial transaction records so that when financial statements and reports are run, the company’s assets are equal to its liabilities plus owners’ equity (net worth).Click to see full answer. In this manner, why is double entry bookkeeping so important?Double-entry bookkeeping is an accounting technique that records a debit and credit for each financial transaction occurring within a company. Companies benefit greatly from using double-entry bookkeeping because it aids in accurate financial reporting and reduces errors and fraudulent activity.Subsequently, question is, what is the golden rule of double entry bookkeeping? Transactions are entered in the books of accounts by applying the following golden rules of accounting: Real account: Debit what comes in and credit what goes out. Personal account: Debit the receiver and credit the giver. Nominal account: Debit all expenses & losses and credit all incomes & gains. Furthermore, what does double entry bookkeeping mean? Double entry means that every transaction will involve at least two accounts. For example, if your company borrows money from the bank, the company’s asset Cash is increased and the company’s liability Notes Payable is increased. Double entry also requires that one account be debited and the other account be credited.What is the purpose of a journal entry? The Purpose of Journal Entries Journal entries provide foundational information for all of a business’s other financial reports. They’re used by auditors to analyze how financial transactions impact a business.