Abstract Extensive use is made of the double entry method in national income accounting. National income accounts usually cover two broad phases of economic activity. The first of these is the production of the entire economy. The second covers the disposition of production among final users. For these purposes, the accounting system requires one or more accounts to record production and one or more accounts to record the disposition of production among final users. The production account shows unduplicated costs of output as debits and unduplicated output of commodities and services as credits. Each of the accounts used to record disposition of production among final users is essentially a receipts and expenditure type of account. In general, the mechanics of double entry recording in national income accounting are relatively simple. A cost item in the production account is an income item for some expenditure type account. Conversely, an income item in the production account is an expense or cost item for some expenditure type account. In addition, there are flows between the expenditure type accounts themselves. Any open balances remaining in the accounts are transferred to the capital account.
Raymond Nassimbene (Fri,) studied this question.