Glossary · Bookkeeping basics
Journal entry (JE)
A journal entry is a manual record of a transaction that lists the accounts affected and the amount debited or credited to each, with total debits equal to total credits. It is used for things no ordinary form covers, such as depreciation, accruals, corrections and moving amounts between accounts.
Glossary / Journal entry · Also called general journal entry, adjusting entry
How it works
Most transactions are entered through forms: an invoice, a bill, a cheque. Each form creates the journal lines behind the scenes. A journal entry is what you use when there is no form, or when an accountant needs to adjust the books at month-end or year-end.
Common uses are recording monthly depreciation, accruing an expense that has not been billed yet, reclassifying a cost posted to the wrong account, and entering opening balances. Each entry should have a date and a memo that explains why it was made, so someone reading it next year understands it.
Worked example: Recording a month of depreciation
A delivery van cost $36,000 and is depreciated straight-line over 5 years with no salvage value. That is $36,000 / 60 months = $600 a month.
At the end of each month the bookkeeper posts a journal entry: debit Depreciation Expense $600, credit Accumulated Depreciation $600. Debits equal credits, the profit and loss picks up the expense, and the van's book value on the balance sheet drops by $600.
| Account | Debit | Credit |
|---|---|---|
| Depreciation Expense | $600 | |
| Accumulated Depreciation | $600 | |
| Totals | $600 | $600 |
In AcboBooks
The General Journal Entry form will not save until total debits equal total credits. Entries can be flagged as accountant adjustments, which then appear on the Adjusting Journal Entries report and in the adjustments column of the Adjusted Trial Balance.
Related terms
- Double-entry bookkeeping
- Debits and credits (Dr / Cr)
- General ledger (GL)
- Depreciation
- Accrued expense
- Closing the books
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Updated October 25, 2026. General information, not tax, legal or accounting advice. Rules and rates change; check with the IRS, the CRA, your state or province, or your accountant.
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