It is used to satisfy the equation Assets = Liabilities + Equity. The double-entry system of bookkeeping or accounting makes it easier to. The accounting formula serves as the foundation of double-entry bookkeeping. Also called the accounting equation or balance sheet equation. In double entry system, debit and credit of each account properly determined by Methods of determining debit and credit in accounting are; golden rules and equation Definition, Formula, Examples, Journal Entry Accounting's Relation with.