What is a journal entry?

A journal entry is a recording of a financial transaction in a ledger (or journal) that can be subsequently used for reconciliation and transfer to other official accounting records such as the intelligent general ledger. A journal entry lists the transaction date, which account was affected, and the amounts involved, typically in a double-entry bookkeeping method. A journal entry provides an audit trail to analyze the effects of transactions on the company’s financial position and performance.

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