journal entry - illustration 5
Answers
Explanation:
A journal entry is the act of keeping or making records of any transactions either economic or non-economic.
Transactions are listed in an accounting journal that shows a company's debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit. The total of the debits must equal the total of the credits, or the journal entry is considered unbalanced.
Journal entries can record unique items or recurring items such as depreciation or bond amortization. In accounting software, journal entries are usually entered using a separate module from accounts payable, which typically has its own sub-ledger, that indirectly affects the general ledger. As a result, journal entries directly change the account balances on the general ledger. A properly documented journal entry consists of the correct date, amount(s) that will be debited, amount that will be credited, narration of the transaction, and unique reference number (i.e. check number).[1]
The book in which transactions are recorded serially and chronologically in their dual aspect - Debit and Credit - with date of transactions, particulars of transactions showing the accounts concerned in each transaction and the circumstances leading to the transactions (i.e., narration) and the amount of the transactions is called a Journal.