Journal Entries

Return to Principles of Accounting

Journal Entries – are similar to T-accounts in that they can represent several general ledger accounts, 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 said to be “unbalanced.”  Journal entries directly change the account balances on the general ledger.

Debits are reported first, as common practice, followed by credits which are slightly (right) indented, e.g.

Date     Account Titles and Explanation     Posted Ref.         Debit     Credit
Jan. 1     Cash                                                                       20.00

Contributed Capital                                                      20.00

Return to Principles of Accounting

Fatal error: Uncaught Exception: 12: REST API is deprecated for versions v2.1 and higher (12) thrown in /homepages/2/d283115547/htdocs/wp-content/plugins/seo-facebook-comments/facebook/base_facebook.php on line 1273