Journal entry
Journal entry is the first record a transaction receives in an accounting system. Written in the general journal, it states the date, the accounts affected, the amounts debited and credited, and a brief narration.
FrameworkDouble-entry bookkeeping
See it move
A formula card displays the standard journal entry layout using a rent payment as the worked example: Dr Rent Expense 1,200 appears first, unindented, followed by Cr Cash 1,200, indented below and equal in amount. Three rules accompany the entry: the debit line always appears first; total debits always equal total credits; and every entry carries a date and a brief narration explaining the transaction. The symbols Dr and Cr are defined respectively as the debited account (listed first, unindented) and the credited account (indented below, matching amount).
Check yourself
A business purchases €4,500 of office supplies on credit; the supplies are expensed immediately as a period cost. Which journal entry correctly records this transaction?