What are the three basic rules of double-entry bookkeeping?

The double-entry system of bookkeeping adheres to fundamental principles that ensure accurate and balanced financial recording. Firstly, it mandates that debits are recorded on the left side of the ledger, while credits are placed on the right. Secondly, it enforces the essential rule that every debit entry must be accompanied by a corresponding credit entry, ensuring the books always maintain equilibrium. Lastly, this system operates on the principle that debits represent the receipt of benefits or assets, while credits denote the giving of benefits or liabilities. These principles form the bedrock of transparent and precise financial record-keeping, facilitating effective financial analysis and decision-making for businesses.

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