What Is Journal Entry In Accounting?

Journal entries are the building blocks of accounting procedures. They are the first steps for recording financial transactions. The term consists of two parts: journal and entry.

A journal is a tool that is used to record transactions in chronological order. Information that is recorded for each transaction is called an entry.

Journal entries are summaries of transactions that enable further accounting processes to take place. 

Journals detail the financial transactions of a business and tell us which accounts are affected in each transaction.

The Finance System is a double-entry accounting system. This means that entries of

equal and opposite amounts are made to the Finance System for each transaction. As a

matter of accounting convention, these equal and opposite entries are referred to as a

debit (Dr) entry and a credit (Cr) entry. For every debit that is recorded, there must be an

equal amount (or sum of amounts) entered as a credit. For example, if there are debit

entries which total Rs.100, then all credit entries must total (Rs.100).