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Bookkeeping Glossary

What is Journal Entry?

A manual bookkeeping entry recording debits and credits directly.

The plain-English definition

A journal entry records a transaction directly as debits and credits, naming the accounts and amounts on each side. In modern software most entries happen through forms — invoices, bills, deposits — that create the debits and credits for you; a manual journal entry is how bookkeepers record what the forms don't cover.

Typical journal-entry territory: depreciation, accruals, correcting a miscategorized transaction, and owner equity moves. Because journal entries bypass the guardrails of forms, they deserve care: a clear memo explaining why, and restraint — books stitched together from mystery journal entries are a red flag.

A concrete example

Month-end depreciation: debit Depreciation Expense $250, credit Accumulated Depreciation $250, memo 'monthly depreciation — delivery van.' No cash moved; the entry records the van's cost being used up.

Related terms

Debits and Credits · Depreciation · Accrued Expenses — or browse the full plain-English glossary.

Make it stick

Reading a definition is the easy part — the Daily Challenge (ten questions a day, free, no signup) is how terms like this become reflexes. Going for certification? Start with the free ProAdvisor readiness check.

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