Definition

Noun: A formal, written record documenting a single financial transaction within a bookkeeping or accounting system. It is the fundamental building block of an accounting ledger, representing an event that changes a company's financial position.

Usage

An accounting entry is used to capture the financial effect of a business activity. Each entry must follow the double-entry bookkeeping principle, meaning it records equal amounts of debits and credits to different accounts. It serves as the official, auditable documentation for every transaction.

Examples

• The bookkeeper made an accounting entry to record the purchase of new office supplies.
• Every sale must be supported by a corresponding accounting entry in the general ledger.
• The auditor reviewed the accounting entry for the asset purchase to verify its accuracy.

Advanced Usage

• Compound Journal Entry: A single accounting entry that involves more than two accounts (e.g., one debit to "Cash" and credits to both "Sales Revenue" and "Sales Tax Payable").
• Adjusting Entry: A special type of accounting entry made at the end of an accounting period to allocate revenues and expenses to the correct period, such as for accrued expenses or prepaid revenues.
• Reversing Entry: An optional accounting entry made at the beginning of a new accounting period to reverse certain adjusting entries from the previous period, simplifying the recording of subsequent transactions.

Variants and Related Words

• Journal Entry: A very common synonym for accounting entry, often used interchangeably. It specifically refers to the initial recording of a transaction in the journal before it is posted to the ledger.
• Ledger Entry: Refers to the accounting entry after it has been posted (transferred) from the journal to the general ledger.
• Double Entry: The foundational system in which every accounting entry has equal debit and credit sides.
• Bookkeeping Entry: A more general term synonymous with accounting entry, emphasizing the recording process.

Synonyms

• Journal Entry
• Bookkeeping Entry
• Ledger Entry
• Transaction Record

Related Phrases

• To make/post an entry: The action of recording an accounting entry.
  • You need to make an entry for the invoice received yesterday.
• To correct an entry: The action of fixing an error in a previously recorded accounting entry.
  • The discrepancy was due to a misclassified account, so we had to correct the original entry.

Noun

1. a written record of a commercial transaction