I'm a software developer, and I'm writing a bookkeeping app for my personal finances and freelance work. It's working pretty well, but one point about double entry bookkeeping confuses me. The descriptions I've seen of the system usually say something like what the Wikipedia page says:
every entry to an account requires a corresponding and opposite entry to a different account
But the purpose of this seems to be keep the accounting equation in balance. (Assets = Liabilities + Equity + Income - Expenses). That might allow a transaction without exact pairings of entries. For example, something like this:
My software groups these under a single transaction in its database. And for each transaction, credits and debits are balanced. Do you think that is correct, or do you foresee some kind of problem by not having every entry within a transaction paired with another entry?