What is a Journal Entry?
A journal entry is the fundamental accounting record documenting a business transaction by recording debits and credits to appropriate general ledger accounts. Each entry includes the transaction date, affected accounts, amounts, and typically a description providing context.
Journal entries follow the double-entry bookkeeping principle, ensuring debits equal credits to maintain accounting equation balance. Entries may be routine (recorded regularly), adjusting (made at period-end), or correcting (fixing errors).
Modern accounting systems facilitate electronic journal entry creation with validation rules, approval workflows, and audit trails. Accurate journal entries are essential for maintaining accounting records integrity, supporting financial statements, and enabling reliable financial reporting and analysis.
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