What is Journal Entry?
Accounting Basics
Explained Simply
Journal entries are the building blocks of accounting. Each entry must have equal debits and credits. Common types include: adjusting entries (accruals, deferrals), closing entries (year-end), and correcting entries (fixing errors). In Accounter, most journal entries are created automatically when you record invoices, payments, or receipts. Manual journal entries are used for transactions like depreciation, loan interest, or correcting errors.
Related Terms
- Double-Entry BookkeepingDouble-entry bookkeeping is an accounting method where every financial transaction is recorded in at least two accounts — a debit in one and a credit in another — ensuring the books always balance.
- General LedgerA general ledger is the master accounting record that contains all financial transactions of a business, organised by account, forming the basis for financial statements.