Before we will move on When we have to use Journal Entry. Do we have to learn more about What is a Journal Entry? Do you need to make a journal Entry or you are going to leave it on your Accountant, Bookkeeper or your ProAdvisor?
What is a Journal Entry?
Let’s start looking with what is a Journal Entry? We will go back in the history of Accounting and Bookkeeping when first recorded in a ‘journal’, hence the term ‘journal entry.
A journal is the record of Business Financial Transactions order by date in the world of Accounting and Bookkeeping. There are a few things we have to keep in mind when we are going to record the manual journal entry. Those are the following:
- The Correct Date of Transaction
- The Account and Amount that will be Debited
- The Account and Amount that will be Credited
- The Short Description that will be related to Journal
- The Debit and Credit must be Equal Amounts
We are heading over the 2018 and entering into 2019. The Accounting & Bookkeeping software recording the transactions automatically. The QuickBooks Online will automatically record most of the business transactions into the general ledger accounts immediately after the software prepares the transaction. This will applies to sales invoices, deposits, payments to invoices, expenses, bills, payments to bills, inventory purchases.
Here are few Journal Entries Examples
Journal entries are the first step of the Accounting Cycle. It begins as an accounting period starts. First business transactions occurred, Journal Entries started. Because we have to pass the Journal Entries to complete our Accounting Cycle. I am going to share few transactions examples. We will do Journal entries Examples of those transactions.
After Analysing the transactions we must need to Classify our Business Financial Transactions. We have to record them as Debit and Credit with amounts and Accounts. Which one we want to Add into proper Account
Examples Accounting Journal Entries
QuickBooks Online is cloud base accounting software. So you don’t need to process the accounting journal entries in QuickBooks online. Some journal entry examples include:
- Investment of Capital (Partner Contribution)
- Purchase of Supplies
- Purchase of Land
- Purchase of Machinery
- Depreciation on Machinery
- Interest on loan accounts
- Sale of Products
- Payment of Wages & Salaries
There are many more examples of journal entries but currently. I am offering Accounting & Bookkeeping services for small business owners.