Learn what journal entries are, how to make them, and why they are important for accounting. See examples of common journal entries and how they are used in the accounting cycle. A journal entry is a record of a financial transaction in the books of accounts. Businesses use journal entries to track money flowing and by following the double-entry bookkeeping system, which ensures that every transaction has equal debits and credits. The following journal entry examples in accounting provide an understanding of the most common journal entries used by business enterprises in their day-to-day financial transactions. Journal entry is the first step in the accounting cycle that helps you record financial transactions as and when required . In this comprehensive guide, we will discuss all the crucial aspects of journal entry in accounting, including its rules, format and types.
