Journal Entry

Definition

The first formal record of a financial transaction under the double-entry bookkeeping system, showing the accounts to be debited and credited along with narration. It is recorded in the Journal, the 'Book of Original Entry'.

Example

"When goods worth ₹10,000 are purchased on credit: Purchases A/c Dr ₹10,000 / To Creditor A/c ₹10,000."

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