Definition of Journal entry

Journal entry

The formal accounting entry used to identify a business transaction. The
entry itemizes accounts that are debited and credited, and should include some
description of the reason for the entry.

Credit

One side of a journal entry, usually depicted as the right side.

Debit

One side of a journal entry, usually depicted as the left side.

Book-entry securities

The Treasury and federal agencies are moving to a book-entry system in which securities are not represented by engraved pieces of paper but are maintained in computerized records at the
Fed in the names of member banks, which in turn keep records of the securities they own as well as those they
are holding for customers. In the case of other securities where a book-entry has developed, engraved
securities do exist somewhere in quite a few cases. These securities do not move from holder to holder but are
usually kept in a central clearinghouse or by another agent.

Double entry

The system of recording business transactions in two accounts.

Cash receipts journal

A journal used to record the transactions that result in a debit to cash.

Journalizing

The process of taking a transaction and putting it into a form that allows it to be recorded in the accounting records.

Payroll journal

A journal used to record the payroll of a company.

Purchases journal

A journal used to record the transactions that result in a credit to accounts payable.

Reversing entry

An entry that is made at the beginning of the current period so that the systems and procedures do not have to be altered to allow for previously accrued items.

Sales journal

A journal used to record the transactions that result in a credit to sales.

Specialized journals

journals that are used to aid in segregating duties and making the accounting function efficient.

double-entry accounting

See accrual-basis accounting.

Entry

The act of recording an accounting transaction in the accounting books.

Re-entry

This is a provision in some term insurance policies that allow the insured the right to renew the policy at a more favourable rate by providing updated evidence of insurability.

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