> For the complete documentation index, see [llms.txt](https://docs.senmo.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.senmo.io/segment-ledger/core-concepts/double-entry-accounting.md).

# Double-Entry Accounting

Segment Ledgers is built on the principles of double-entry accounting.

Every movement of value generates equal debit and credit entries.

For example, if Alice sends Bob €100:

```
Transaction
================================
Alice Wallet        Debit   €100
Bob Wallet          Credit  €100
================================
Total Debits  = €100
Total Credits = €100
```

Because every transaction is balanced, the ledger always remains mathematically correct.

This eliminates many classes of accounting errors and greatly simplifies reconciliation.