Explain How is a journal entry recorded?
Journal Entries are recorded on a double entry system ie debit and credit concept. In order to record a journal entry the following steps need to be followed.
- Enter the Journal entry number
- Enter the Date of transaction
- Enter the Debit item (as per the golden principles of accountancy)
- Enter the corresponding GL folio number
- Enter the Debit amount
- Enter the credit item(as per the golden principles of accountancy)
- Enter the amount in the credit column
- Provide a brief description of the transaction
- leave a single line before next transaction
- Accounting and Finance