What is Journal Entry?
Definition
A journal entry is a record of a financial transaction in the accounting system, showing the accounts affected, the amounts debited and credited, and the date of the transaction.
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 Bookkeeping
Double-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 Ledger
A general ledger is the master accounting record that contains all financial transactions of a business, organised by account, forming the basis for financial statements.
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