What is journal entry ?

 A journal entry is a record of a transaction or event in accounting. It is the first step in the accounting process, where financial transactions are initially recorded before being transferred to the general ledger.

A journal entry typically includes the following components:

  1. Date: The date when the transaction or event occurred.

  2. Accounts: The specific accounts involved in the transaction. Each journal entry must include at least two accounts—an account to be debited and an account to be credited.

  3. Debit and Credit: The amounts entered in the debit and credit columns of the journal entry. Debits are recorded on the left side of the entry, while credits are recorded on the right side. The total debits must equal the total credits for the entry to be in balance.

  4. Description/Narration: A brief description or explanation of the transaction or event.

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