A journal entry is the recorded transaction in accounting, showing the date, accounts affected, debit amounts, credit amounts, and a brief description. Every transaction begins as a journal entry, which then posts to the general ledger. Manual journal entries are common for adjusting items (depreciation, accruals, deferrals) and corrections; routine transactions (sales, payments) are entered through subsidiary modules (sales, A/P, payroll). Reverse journal entries undo prior entries when assumptions change. Adjusting journal entries at period-end ensure revenues and expenses are properly matched to the period. Closing entries zero out temporary accounts (revenue, expense) at year-end.
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Accounts Payable
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Accounts Receivable
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Accrual Accounting
Accrual accounting recognizes revenues when earned (regardless of cash receipt) and expenses when incurred (regardless of cash payment)…
Accrued Expense
An accrued expense is a cost recognized in the income statement before cash is paid — recorded as…
Amortization
Amortization is the systematic allocation of intangible asset cost over its useful life — analogous to depreciation but…
Audit
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Journal Entry
August 22, 2026 · Aditya Gupta
Accounting
Related terms
Accounts Payable
Accounts Payable (A/P) is money a company owes to suppliers for goods or services received but not yet…
Accounts Receivable
Accounts Receivable (A/R) is money owed to a company by customers for goods or services delivered on credit.…
Accrual Accounting
Accrual accounting recognizes revenues when earned (regardless of cash receipt) and expenses when incurred (regardless of cash payment)…
Accrued Expense
An accrued expense is a cost recognized in the income statement before cash is paid — recorded as…
Amortization
Amortization is the systematic allocation of intangible asset cost over its useful life — analogous to depreciation but…
Audit
An audit is an independent examination of a company's financial records, internal controls, and statements — typically conducted…
