What is a journal entry?

[niyati]

Can someone explain what a journal entry is, how it works, and why it's important for keeping financial records?

 

[robertwilliam]

A journal entry is a record of a business transaction within an accounting system. It details the debit and credit amounts for specific accounts, along with a description of the transaction and a date. These entries are the foundational step in the double-entry bookkeeping system and are crucial for maintaining accurate financial records.

 

[ankita]

A journal entry is the formal way of recording a business transaction in the accounting books. It follows the double-entry system, listing debits and credits for affected accounts along with the date and description. Journal entries ensure accuracy, transparency, and a complete record of financial activities.