How to Write a Journal Entry: 14 Examples

Journal entries are a fundamental aspect of accounting because they track money that is coming and going. Even though the format may vary, every journal entry example will have a statement about debits and credits and the kind of transaction that occurred.

What Is a Journal Entry?

A journal entry is when you make a record of a transaction that happens in connection with your personal or business accounts. You can use this to keep track of money spent and money received. Journal entries are also helpful in organizing accounts payable, accounts receivable, and expenses in connection with inventory. Whether you’re learning about accounting for work or about to go on your first accounting interview, you’ll want to get familiar with journal entries and how they work.

How Do You Make a Journal Entry?

There are three basic steps when making a journal entry, and writing the actual entry itself comes last.

1. Specify the Transaction Entered

While this may seem like the easiest step, it is also one that is commonly overlooked. You have to structure your business in a way that identifies each applicable transaction. This involves ensuring that everyone involved in making payments or collecting them has a thorough understanding of which kinds of transactions qualify. 

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