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Journal Entry

Business Solution


1. Vouching

2. Journal Entry

3. Bank Reconciliation

4. Party Reconciliation (Debtors & Creditors)

5. Sales, purchase, payment, receipt, debit note, credit note

6. Inventory

7. Costing

8. Cost centres (project wise)

9. Preparation and finalisation of P/L & B/s…etc various things

           Journal Entry

A journal entry is a record of the business deals in the account books of a business. A duly proved journal entry consists of the correct date, amounts to be debited and credited, a description of the sale, and a unique reference number.

A journal entry is the first step in the account cycle. A journal details all fiscal deals of a business and makes a note of the accounts that are affected. Since utmost businesses use a double-entry account system, every fiscal sale impacts at least two accounts, while one account is debited, another account is credited. This means that a journal entry has equal debit and credit amounts.

Purpose of Journal Entry

A journal is a record of deals listed as they do that shows the specific accounts affected by the sale. Used in a double-entry account system, It bear both a debit and a credit to complete each entry. So, when you buy goods, it increases both the force and the accounts outstanding accounts.

These are the foundation for all fiscal reports. They give important information that is used by adjudicators to analyze how fiscal deals impact a business. It is also posted to the general tally.

A journal entry requires the following elements: –

1. A title which includes the date of the entry.
2. The debit quantum is entered in the third column.
3. The credit quantum is entered in the alternate column.
4. The description of the journal entry in the footer.
5. A reference number or a journal entry number that can be used to indicator and recoup the journal when needed.