Journal entry
In one sentenceThe record of a single financial transaction with its date, the debited and credited accounts, their amounts and a brief description; it is the smallest unit in the books.
Simply put
Every invoice, receipt voucher or payment voucher becomes an entry: Dr the debit account, Cr the credit account, with the amount, date and description.
Entries are recorded in the general journal first and then posted to the general ledger accounts. In a correct entry, debits equal credits.
Worked example
A clothing shop paid the month's rent of 5,000 SAR by bank transfer.
Dr: Rent expense (debit)5,000
Cr: Bank (credit)5,000
Total debits = Total credits5,000 SAR
Don't confuse it with
Adjusting entriesA special kind of entry recorded at the end of the period without a new cash transaction.
in FullScreen ERP
In the system, every invoice and voucher generates its entry automatically with no intervention. General accounts