There are two things in accounting; one thing is I am receiving some amount, and the other thing is I am paying some amount. The paying or receiving will come under certain account. Whatever I receive is put under debtor column. Debtor means receiver, and the particular begins with the word “to.” Whatever I am paying is entered into the creditor column. Creditor means payer. In this way, after the whole day’s transactions, you make a total of the debtor column and creditor column, and if there is any balance, it is adjusted by the words “balance carried forward.” This balance is entered in the creditor column. So we have to see that the amount in the debtor column and the amount in the creditor column is equal. This is called a correct account. Next day you begin with “To Balance B.F.” That means whatever balance you had the day before you put in the debtor column with particulars To Balance B.F.. Then begin your transactions as in the previous day. This is the system of keeping an account in general. For the time being, keep your account in that way, and later on, as you inquire, I will let you know more about how to keep books.
From the letter to Krsna dasa (Columbus, Ohio 8 May, 1969)