Journal Entry Terms: Definitions, Formats, and Examples
Explore journal entry terms related to transaction analysis, debit and credit rules, entry formats, source documents, simple and compound entries, adjusting entries, closing entries, reversing entries, sales and purchase entries, payroll, depreciation, posting, corrections, approvals, supporting documentation, and practical examples.
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Search for journal entry definitions and related accounting topics published on Accountant Compass.
Journal Entry Terms Learning Path
Follow this sequence to understand entry structure, transaction analysis, debit and credit rules, posting, and review.
Understand Journal Entries
Learn the purpose, structure, date, accounts, debit amounts, credit amounts, and narration of an entry.
What Is a Journal Entry? →Analyze the Transaction
Identify the accounts affected, their classifications, and whether each account increases or decreases.
Explore Transaction Analysis →Apply Debits and Credits
Use normal balances and double-entry rules to record equal debit and credit amounts.
Explore Debit and Credit Rules →Review and Post
Verify the entry, add references, post to the ledger, and confirm the resulting account balances.
Explore Posting and Review →Major Journal Entry Classifications
Journal entries may be classified by the number of accounts, accounting purpose, and timing within the reporting cycle.
Simple Journal Entry
An entry involving one debit account and one credit account.
Compound Journal Entry
An entry involving more than two accounts while total debits still equal total credits.
Adjusting Journal Entry
An entry recorded at period end to update accruals, deferrals, estimates, and allocations.
Closing and Reversing Entries
Entries used to close temporary accounts or simplify selected transactions in the next period.
Browse Journal Entry Terms by Category
Use these collections to find related journal entry definitions and explanations.
Journal Entry Format Terms
Dates, account titles, debit columns, credit columns, references, narration, and supporting details.
Explore Journal Entry Format Terms →Transaction Analysis Terms
Accounts affected, account classifications, increases, decreases, source documents, and evidence.
Explore Transaction Analysis Terms →Debit and Credit Terms
Normal balances, left and right sides, double-entry rules, balancing, and contra accounts.
Explore Debit and Credit Terms →Adjusting Entry Terms
Accrued revenue, accrued expenses, prepaid expenses, unearned revenue, depreciation, and estimates.
Explore Adjusting Entry Terms →Closing Entry Terms
Temporary accounts, income summary, retained earnings, owner capital, dividends, and withdrawals.
Explore Closing Entry Terms →Sales and Purchase Entry Terms
Cash sales, credit sales, cash purchases, credit purchases, returns, discounts, and inventory entries.
Explore Sales and Purchase Entry Terms →Payroll and Asset Entry Terms
Payroll, depreciation, amortization, fixed assets, disposals, bad debts, and allowance entries.
Explore Payroll and Asset Entry Terms →Posting and Error Terms
Ledger posting, cross-references, correction entries, reversing entries, and error review.
Explore Posting and Error Terms →Essential Journal Entry Terms
Start with these commonly used journal entry definitions.
Journal Entry
A chronological accounting record showing the debit and credit effects of a transaction or adjustment.
View Definition → JJournal
A book or electronic record in which transactions are initially recorded in chronological order.
View Definition → GGeneral Journal
A journal used to record transactions not assigned to a specialized journal.
View Definition → SSimple Journal Entry
An entry containing one debit account and one credit account.
View Definition → CCompound Journal Entry
An entry involving more than two accounts while maintaining equal debit and credit totals.
View Definition → DDebit
An amount recorded on the left side of an account or journal entry.
View Definition → CCredit
An amount recorded on the right side of an account or journal entry.
View Definition → DDouble-Entry Accounting
A system requiring each qualifying transaction to have equal debit and credit effects.
View Definition → NNormal Balance
The debit or credit side on which an account ordinarily increases and carries its expected balance.
View Definition → AAccount Title
The formal name of an account used in a journal entry and ledger.
View Definition → AAccount Classification
The grouping of an account as an asset, liability, equity, revenue, expense, or contra account.
View Definition → NNarration
A brief explanation describing the nature and purpose of a journal entry.
View Definition → PPosting Reference
A code or mark connecting a journal entry with the related ledger account.
View Definition → SSource Document
Original evidence supporting the transaction recorded in a journal entry.
View Definition → TTransaction Analysis
The process of identifying affected accounts and determining their debit and credit changes.
View Definition → BBalanced Entry
A journal entry in which total debit amounts equal total credit amounts.
View Definition → UUnbalanced Entry
An incorrect entry in which total debits do not equal total credits.
View Definition → OOpening Entry
An entry used to establish opening account balances at the start of a new set of records or period.
View Definition → AAdjusting Entry
A period-end entry that updates accounts for accruals, deferrals, estimates, or allocations.
View Definition → AAccrued Revenue Entry
An adjusting entry recognizing revenue earned before billing or cash collection.
View Definition → AAccrued Expense Entry
An adjusting entry recognizing an expense incurred before payment.
View Definition → PPrepaid Expense Adjustment
An entry transferring the consumed portion of a prepaid asset to expense.
View Definition → UUnearned Revenue Adjustment
An entry recognizing the portion of a liability that has become earned revenue.
View Definition → DDepreciation Entry
An entry recognizing depreciation expense and accumulated depreciation.
View Definition → AAmortization Entry
An entry recognizing the periodic allocation of a qualifying intangible asset’s cost.
View Definition → BBad Debt Entry
An entry recognizing estimated or specific uncollectible receivables.
View Definition → AAllowance Entry
An entry involving an allowance account used to adjust the carrying amount of a related account.
View Definition → CClosing Entry
An entry transferring temporary account balances and resetting them for the next period.
View Definition → IIncome Summary
A temporary account sometimes used during the closing process.
View Definition → RReversing Entry
An optional entry recorded at the beginning of a period to reverse selected prior-period adjustments.
View Definition → CCorrection Entry
An entry made to correct an error without deleting the historical accounting trail.
View Definition → CCash Sales Entry
An entry recording revenue and related effects when a customer pays immediately.
View Definition → CCredit Sales Entry
An entry recording revenue and a receivable when payment will be collected later.
View Definition → CCash Purchase Entry
An entry recording an asset or expense acquired through immediate payment.
View Definition → CCredit Purchase Entry
An entry recording an asset or expense acquired on supplier credit.
View Definition → SSales Return Entry
An entry recording goods returned by a customer and the related revenue or inventory effects.
View Definition → PPurchase Return Entry
An entry recording goods returned to a supplier and the related payable or inventory effects.
View Definition → SSales Discount Entry
An entry recording a reduction granted to a customer under discount terms.
View Definition → PPurchase Discount Entry
An entry recording a reduction received from a supplier under discount terms.
View Definition → AAccounts Receivable Entry
An entry affecting amounts owed by customers.
View Definition → AAccounts Payable Entry
An entry affecting amounts owed to suppliers.
View Definition → PPayroll Entry
An entry recording gross pay, deductions, employer costs, liabilities, and net pay.
View Definition → IInventory Entry
An entry recording purchases, sales, adjustments, losses, or other inventory changes.
View Definition → FFixed Asset Entry
An entry recording the acquisition, improvement, depreciation, or disposal of a long-lived asset.
View Definition → AAsset Disposal Entry
An entry removing an asset and related accumulated depreciation while recognizing proceeds and gain or loss.
View Definition → LLoan Entry
An entry recording borrowing, principal repayment, interest, and related liabilities.
View Definition → IInterest Entry
An entry recognizing interest expense, interest revenue, payable amounts, or receivable amounts.
View Definition → DDividend Entry
An entry recording declaration or payment of a corporate dividend.
View Definition → OOwner Withdrawal Entry
An entry recording resources withdrawn by an owner for personal use.
View Definition → BBank Charge Entry
An entry recording fees deducted by a financial institution.
View Definition → NNSF Check Entry
An entry reversing a customer payment that was not honored by the bank.
View Definition → PPetty Cash Entry
An entry establishing, replenishing, increasing, or decreasing a petty cash fund.
View Definition → TTransfer Entry
An entry recording movement between accounts, departments, funds, or cash locations.
View Definition → MMemorandum Entry
A nonstandard explanatory record used in limited contexts without the effect of a normal journal entry.
View Definition → RRecurring Journal Entry
An entry repeated on a regular schedule for similar transactions or adjustments.
View Definition → SStandard Journal Entry
A predefined entry template used for recurring or consistently structured transactions.
View Definition → MManual Journal Entry
An entry created directly by an authorized user rather than generated automatically.
View Definition → AAutomated Journal Entry
An entry generated by an accounting system from configured transactions or processes.
View Definition → PPosting
The process of transferring journal entry information to ledger accounts.
View Definition → CCross-Reference
A reference connecting the journal entry, ledger account, and supporting document.
View Definition → JJournal Entry Approval
A review and authorization control performed before an entry is posted.
View Definition → JJournal Entry Support
Documents, calculations, schedules, and explanations substantiating an entry.
View Definition → JJournal Entry Testing
An audit or control procedure used to evaluate selected entries for risk or irregularity.
View Definition → AAudit Trail
A traceable record connecting source documents, entries, approvals, postings, and reports.
View Definition →Connect Every Journal Entry Term to the Accounting Record
Journal entry definitions become more useful when connected to the transaction date, source document, accounts affected, account classifications, debit and credit amounts, narration, approval, posting reference, ledger balances, supporting schedules, error review, and audit trail.
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Frequently Asked Questions About Journal Entry Terms
What is a journal entry?
A journal entry is a chronological accounting record showing the accounts affected by a transaction or adjustment and the related debit and credit amounts.
What information should a journal entry contain?
A complete entry commonly contains the date, account titles, debit amounts, credit amounts, a narration, posting references, and supporting documentation.
What is the difference between a simple and compound journal entry?
A simple entry involves one debit account and one credit account. A compound entry involves more than two accounts while total debits still equal total credits.
What is the difference between adjusting and closing entries?
Adjusting entries update accounts for accruals, deferrals, estimates, and allocations. Closing entries transfer temporary balances and reset temporary accounts for the next reporting period.
Why must total debits equal total credits?
Equal debit and credit totals preserve the double-entry accounting structure and keep the accounting equation in balance.
Continue to Ledger and Trial Balance Terms
After learning how transactions and adjustments are journalized, continue with Ledger and Trial Balance Terms to study posting, account balances, control accounts, subsidiary ledgers, debit and credit totals, and trial balance preparation.
Continue to Ledger and Trial Balance Terms