Accounts

Entering debits and credits


An important step in the process of creating a General Journal entry is selecting the accounts that are affected by the transaction and entering the amounts by which these accounts have changed.

Each row of information you enter on a General Journal entry is called a line item. You can enter as many line items for an entry as you want, but you must have at least two line items - a debit entry and a credit entry to offset it. When you've finished entering debits and credits for a General Journal entry, the Out of Balance field should be blank. When it is, you're ready to record the transaction.

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