A journal entry is first step in the accounting cycle. It records business transactions using the double-entry bookkeeping system. Every transaction affects at least two accounts — one debit and one credit and for must always balance.
Journal Entry Sample
Capital Introduced By Owner in Business Journal Entry
Date
Account Title
Debit ($)
Credit ($)
Jan 1, 2025
Cash
10,000
Capital
10,000
record capital introduced by owner.
Purchased of Office Equipment in Cash Journal Entry
Date
Account Title
Debit ($)
Credit ($)
Jan 5, 2025
Office Equipment
2,500
Cash
2,500
Record purchase of office equipment in cash.
Rent Payment Through Bank Journal Entry
Date
Account Title
Debit ($)
Credit ($)
Jan 10, 2025
Rent Expense
1,200
Bank
1,200
Record rent payment for January.
Credit Sales Made Journal Entry
Date
Account Title
Debit ($)
Credit ($)
Jan 12, 2025
Accounts Receivable
3,000
Sales Revenue
3,000
Record credit sales made to customer.
Salary Paid to Staff In Cah Journal Entry
Date
Account Title
Debit ($)
Credit ($)
Jan 20, 2025
Salaries Expense
2,000
Cash
2,000
Record salary paid to staff.
Purchase of Goods on Credit Journal Entry
Date
Account Title
Debit ($)
Credit ($)
Apr 1, 2025
Purchase A/c
7,000
Accounts Payable
7,000
Return of Goods to Supplier Journal Entry
Date
Account Title
Debit ($)
Credit ($)
Apr 5, 2025
Accounts Payable
1,000
Purchase
1,000
Full Payment Made to Supplier Journal Entry
Date
Account Title
Debit ($)
Credit ($)
Apr 10, 2025
Accounts Payable
6,000
Cash
6,000
Cash Discount Received from Supplier Journal Entry