Definition

Noun: 1. A written record of a commercial transaction: A single, formal notation made in an accounting ledger to document a specific financial event, such as a sale, purchase, payment, or receipt. Each entry records the date, accounts affected, and monetary amounts, following the principles of double-entry bookkeeping.

Usage

A ledger entry is the fundamental unit of an accounting system. It is used to chronologically and systematically capture the financial impact of a business activity. The collection of all ledger entries forms the general ledger, which is used to prepare financial statements.

Examples

• Noun:
  • The accountant made a ledger entry to record the invoice from the new supplier.
  • Every ledger entry must have equal debit and credit amounts to maintain the accounting equation.
  • Auditors traced the transaction back to its original ledger entry in the journal.

Advanced Usage

• "to post a ledger entry": The act of transferring a journal entry to the appropriate accounts in the general ledger.
  • After reviewing the invoice, the bookkeeper will post the ledger entry to the "Utilities Expense" account.

Variants and Related Words

• Journal Entry (n): The initial record of a transaction, often made in a journal before being posted as a ledger entry. These terms are sometimes used interchangeably, though a journal entry is technically the first step.
• Double Entry (n): The bookkeeping system where every transaction results in at least two ledger entries (a debit and a credit).
• Posting (n): The process of transferring entries from the journal to the ledger.

Synonyms

• Accounting entry: A direct synonym.
• Bookkeeping entry: Emphasizes the procedural aspect of recording.
• Entry: A more general term that can be used in context.

Related Phrases

• Make an entry: To record a transaction.
  • You need to make an entry for the cash sale.
• Adjusting entry: A special ledger entry made at the end of an accounting period to allocate revenues and expenses to the proper period.
  • Depreciation is recorded through an adjusting entry.

Noun

1. a written record of a commercial transaction