Journal Entry

A journal entry records a business transaction using debits and credits.

Each journal entry affects at least two accounts and follows the double-entry system where total debits equal total credits.

- Used in day-to-day bookkeeping and journal entries to record transactions correctly.
- Used when preparing trial balances and reconciling accounts.

- Example: Accountants use **Journal Entry** when recording transactions and preparing the trial balance.

- Why it matters: Ensures accurate records, supports reliable reporting, and reduces posting and reconciliation errors.