{"id":11743,"date":"2025-01-05T09:41:38","date_gmt":"2025-01-05T09:41:38","guid":{"rendered":"https:\/\/www.hashmicro.com\/ph\/blog\/?p=11743"},"modified":"2026-03-02T04:22:38","modified_gmt":"2026-03-02T04:22:38","slug":"journal-entry-example","status":"publish","type":"post","link":"https:\/\/www.hashmicro.com\/ph\/blog\/journal-entry-example\/","title":{"rendered":"What is a Journal Entry in Accounting? A Guide &amp; Examples"},"content":{"rendered":"<p>Manual journal entries seem simple, but they often lead to a lot of complications. From human errors that makes the debit-credit never reach balance, to misclassified transactions, and hours wasted to check the smallest mistake like a needle in a haystack.<\/p>\n<p>If you think that handling and recording assets, liabilites, and inputting them into journal entries manually is too much work, you can try out <a href=\"https:\/\/www.hashmicro.com\/ph\/accounting-software\">HashMicro Accounting Software<\/a>. This advanced software can record, track, and generate various kinds of documents, including journal entries in a blink on an eye.<\/p>\n<p>However, if you&#8217;re unsure about how a journal entry work or why they matter to a business, this article will guide you through the essentials. Furthermore, we\u2019ll provide a practical journal entry example and introduce an easier way to simplify the process.<\/p>\n<table style=\"border-collapse: collapse; background-color: #fffacd; border-radius: 25px 25px 25px 25px;\" width=\"100%\">\n<tbody>\n<tr>\n<td style=\"padding: 15px; border: none;\">\n<h3 style=\"margin-bottom: 10px;\"><span style=\"background-color: #990000; color: #ffffff; padding: 5px;\"><b>Key Takeaways<\/b><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\">Journal entries keep financial records accurate, so businesses can track transactions and meet requirements.<\/li>\n<li style=\"font-weight: 400;\">Different entry types\u2014like sales, adjusting, and closing\u2014show a company\u2019s financial activities.<\/li>\n<li style=\"font-weight: 400;\">To improve efficiency, businesses should use templates, keep documentation, and apply double-entry bookkeeping.<\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.hashmicro.com\/ph\/accounting-software\">HashMicro Accounting Software<\/a> automates journal entries, which saves time and reduces errors.<\/li>\n<\/ul>\n<p><span data-sheets-root=\"1\"><style>\r\n.button-cta-custom {\r\n    background-color: #8a0e19;\r\n    color: #fff !important;\r\n    -webkit-transition: all .3s ease;\r\n    transition: all .3s ease;\r\n    padding: 8px 24px;\r\n    display: inline-block;\r\n    border-radius: 8px;\r\n    font-size: 16px;\r\n    font-weight: bold;\r\n}\r\n.button-cta-custom:hover{\r\n\tbackground-color:#991b26\t\t\r\n}\r\n<\/style>\r\n<a class=\"button-cta-custom\" href=\"https:\/\/www.hashmicro.com\/ph\/free-product-tour\/?medium=cta-button\" target=\"_blank\">Click Here to Get the Free Demo!<\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><a href=\"https:\/\/www.hashmicro.com\/ph\/free-product-tour\/?medium=free-product-tour\" target=\"_blank\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/bir-demo-gratis.webp\" data-desktop-src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/bir-demo-gratis.webp\" data-mobile-src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/mobile-bir-demo-gratis.webp\" alt=\"FreeDemo\" class=\"responsive-image-banner\" width=\"620\" height=\"255\"><\/a>\r\n\r\n<script>\r\n    \/\/ check which image to use based on screensize\r\n    document.addEventListener(\"DOMContentLoaded\", function() {\r\n        function updateImageSource() {\r\n            var images = document.querySelectorAll('.responsive-image-banner');\r\n            var screenWidth = window.innerWidth;\r\n\r\n            images.forEach(function(img) {\r\n                var mobileSrc = img.getAttribute('data-mobile-src');\r\n                var desktopSrc = img.getAttribute('data-desktop-src');\r\n\r\n                if (screenWidth < 576 && mobileSrc) {\r\n                    img.setAttribute('src', mobileSrc);\r\n                } else {\r\n                    img.setAttribute('src', desktopSrc);\r\n                }\r\n            });\r\n        }\r\n\r\n        \/\/ Initial check\r\n        updateImageSource();\r\n\r\n        \/\/ Update on resize\r\n        window.addEventListener('resize', updateImageSource);\r\n    });\r\n<\/script><div id=\"toc_group_article\" style=''>\r\n\t<p style='font-size:25px;font-weight:bold; margin-bottom:0px'>\r\n\t\tTable of Contents\r\n\t<\/p>\r\n\t<ul id=\"list_toc\" class='list_toc'><\/ul>\r\n<\/div>\r\n\r\n<div id=\"placeholder-toc\"><\/div>\r\n<div id=\"toc\">\r\n    <div class=\"header\">\r\n\t<span class=\"toc-title\" id=\"toc-title\">Content Lists<\/span>\t\r\n\t <i class=\"toc-icon\">\r\n        <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"30\" height=\"30\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"#000\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\" class=\"header-icon\">\r\n          <path d=\"m6 9 6 6 6-6\" \/>\r\n        <\/svg>\r\n      <\/i>\r\n\t<\/div>\r\n    <div class=\"list\">\r\n      <ul id=\"toc-list\"><\/ul>\r\n    <\/div>\r\n <\/div>\r\n\r\n<style>\r\n\/* Simple styling for the TOC *\/\r\n\t\r\n\t#toc ul li:last-child {\r\n    padding-bottom: 16px; \/* Adjust the value as needed *\/\r\n}\r\n\r\n.td-fix-index {\r\n\t transform: unset !important;\r\n     -webkit-transform: unset !important; \r\n}\r\n.footer-contact .td-fix-index {\r\n\t transform: translateZ(0) !important;\r\n     -webkit-transform: translateZ(0) !important; \r\n}\r\n\t.tdb_single_content .tdb-block-inner.td-fix-index{\r\n\t\tposition: static;\r\n\t}\r\n\t\r\n\r\n\t\r\n#toc {\r\n  background-color: #FFF;\r\n\tpadding: 17px 24px 20px 24px !important;\r\n  margin-bottom: 20px;\r\n\/*   border: 1px solid #9C171E; *\/\r\n  border-radius: 6px;\r\n\tdisplay: none;\r\n  max-width: 100%;\r\n  transition: .4s ease height;\r\n\tmargin-left: 0;\r\n\toverflow: hidden;\r\n}\r\n\r\n#toc .header{\r\n  display: flex;\r\n  align-items: center;\r\n  justify-content: space-between;\r\n\tbackground-color: transparent;\r\n}\r\n\t\r\n\t#toc.sticky .header{\r\n\t\tpadding: 4px 0;\r\n\t}\r\n\t\r\n.header p{\r\n  font-size: 18px !important;\r\n  font-weight: 600 !important;\r\n  color: #393939;\r\n   margin-bottom: 0;\r\n  \/* margin-top: 20px; *\/\r\n}\r\n\r\n.toc-icon{\r\n  float: right;\r\n\/*   visibility: hidden; *\/\r\n}\r\n\r\n\t.toc-title{\r\n\t\tmargin-right: auto;\r\n\/* \t\tpadding-left: 20px; *\/\r\n\t\tfont-weight: 600;\r\n\t\talign-self: center;\t}\t\r\n\r\n#toc ul {\r\n  list-style-type: none;\r\n  padding-left: 0;\r\n  padding-top: 20px;\r\n  margin-top: 0px;\r\n}\r\n\t\r\n#toc.sticky ul{\r\n\toverflow-y: auto;\r\n\tmax-height: 250px;\r\n\tmargin-top: 0px;\r\n\tpadding-top: 20px;\r\n\/* \tborder-top: 1px solid #d3d3d3; *\/\r\n}\r\n\t\r\n#toc ul li {\r\n\/*   margin-bottom: 10px; *\/\r\n  margin-bottom: 10px;\r\n\tmargin-left: 0;\r\n\ttransition: .2s ease;\r\n\tcursor: pointer;\r\n}\r\n\t\r\n\t#toc.sticky ul li {\r\n\t  margin-right: 10px;\r\n\t}\r\n\t\r\n.td-post-content #toc-list li a:hover, .td-post-content #toc-list a.active{\r\n\tbackground-color: #FFF;\r\n\/* \tpadding: 8px 16px 8px 16px; *\/\r\n\tpadding: 4px 16px 4px 16px;\r\n\tborder-radius: 6px;\r\n\tcolor: #9c171e !important;\r\n\tfont-weight: 600 !important;\r\n}\r\n\t\r\n\t.td-post-content #toc-list li:hover a, .td-post-content #toc-list a.active{\r\n\t\tcolor: #9C171E !important;\r\n\t\tfont-weight: 600 !important;\r\n\t}\r\n\t\r\n.td-post-content #toc-list a.active{\r\n\tfont-weight: bold !important;\r\n\tcolor: #9C171E !important;\r\n}\r\n\t\r\n#toc a, .td-post-content #toc-list a {\r\n  text-decoration: none;\r\n  color: #ea1717 !important;\r\n  transition: .2s ease;\r\n\tfont-weight: 400 !important;\r\n\tdisplay: block;\r\n\t\r\n\tpadding: 4px 16px 4px 0;\r\n}\r\n\r\n#toc.sticky {\r\n  position: fixed;\r\n\/*   top: 73px; *\/\r\n\tbottom: 0;\r\n  z-index: 100; \r\n  box-shadow: 0 2px 5px rgba(0,0,0,0.1); \r\n\twidth: 100%; \r\n\tbackground-color: #FFF;\r\n\/* \tbackground-color: #FFF1F1; *\/\r\n\tborder-bottom: 1px solid #ea1717;\r\n\/*   border: 1px solid #393939; *\/\r\n  box-shadow: 0px 0px 14px 0px #00000040;\r\n  cursor: pointer;\r\n\tanimation: fadein .3s ease;\r\n\tpadding: 12px 16px !important;\r\n}\r\n\t\r\n\t.fadein{\r\n\t\tanimation: fadein .3s ease;\r\n\t}\r\n\t\r\n\t.fadeout{\r\n\t\tanimation: fadeout .3s ease;\r\n\t}\r\n\t\r\n\t\r\n\t@keyframes fadein{\r\n\t\t0% {\r\n\t\t\topacity: 0;\r\n\t\t}\r\n\t\t100%{\r\n\t\t\topacity: 1;\r\n\t\t}\r\n\t}\r\n\t\r\n\t@keyframes fadeout{\r\n\t\t0% {\r\n\t\t\topacity: 1;\r\n\t\t}\r\n\t\t100%{\r\n\t\t\topacity: 0;\r\n\t\t}\r\n\t}\r\n\r\n\t\r\n#toc.sticky .header p{\r\n\tmargin-bottom: 10px;\r\n\tmargin-top: 10px;\r\n}\r\n\r\n#toc.sticky .toc-icon{\r\n  visibility: visible;\r\n\/* \ttransition: 0.4s ease; *\/\r\n}\r\n\t\r\n\t.toc-icon{\r\n\t\talign-items: center;\r\n    \tdisplay: flex;\r\n\t}\r\n\t\r\n\tsvg.header-icon{\r\n\/* \t\tbackground-color: #9c171e; *\/\r\n\t\tbackground-color: #FFF;\r\n\t\tborder-radius: 30px;\r\n\t\tpadding: 5px;\r\n\t}\r\n\r\n#toc.sticky .list{\r\n\/*   max-height: 0; *\/\r\n  transition: height 0.4s ease;\r\n}\r\n\t\r\n\t#toc .list{\r\n\/*   max-height: 0; *\/\r\n  transition: height 0.4s ease;\r\n}\r\n\r\n#toc .header.active .toc-icon{\r\n\ttransform: rotate(0deg); \r\n\topacity: 1;\r\n}\r\n\r\n\t#toc .header.active + .list {\r\n\t  max-height: 200px; \/* Adjust this value as needed *\/\r\n\t  opacity: 1;\r\n\t}\r\n\t\r\n\t#placeholder-toc{\r\n\/* \t\tdisplay: none; *\/\r\n\t}\r\n\t\r\n\t@media (min-width: 768px) and (max-width: 991px){\r\n\t\t#toc.sticky{\r\n\/* \t\t\ttop: 104px; *\/\r\n\t\t\tbottom: 0px;\r\n\t\t}\r\n\t\t\r\n\t\t#toc{\r\n\t\t\twidth: unset !important;\r\n\t\t}\r\n\t}\r\n\t\r\n\t@media (max-width: 767px){\r\n\t\t#toc{\r\n\t\t\twidth: 100% !important;\r\n\t\t\tdisplay: inline-block;\r\n\t\t}\r\n\t\t\r\n\t\t#toc.sticky{\r\n\t\t\twidth: 84% !important;\r\n\/* \t\t\ttop: 81px; *\/\r\n\t\t\tbottom: 60px;\r\n\t\t\tmargin-left: auto;\r\n\t\t\tmargin-right: auto;\r\n\t\t\tpadding: 0 16px;\r\n\/* \t\t\tright: 5%; 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i < headers.length; i++) {\r\n    const header = headers[i];\r\n    const headerText = header.textContent;\r\n\/\/     const headerId = 'header-' + i;\r\n    const headerId = headerText\r\n    .toLowerCase()\r\n    .trim()\r\n    .replace(\/[^\\w\\s-]\/g, '')  \/\/ hapus tanda baca\r\n    .replace(\/\\s+\/g, '-'); \/\/ ganti spasi jadi \"-\"\r\n\r\n    \/\/ Set an ID for the header if it doesn't have one\r\n    header.setAttribute('id', headerId);\r\n\r\n    \/\/ Create a list item for the TOC\r\n    const listItem = document.createElement('li');\r\n\r\n    \/\/ Create a link for the list item\r\n    const link = document.createElement('a');\r\n    link.setAttribute('href', '#' + headerId);\r\n    link.textContent = headerText;\r\n\r\n    \/\/ Append the link to the list item\r\n    listItem.appendChild(link);\r\n\r\n    \/\/ Append the list item to the TOC list\r\n    tocList.appendChild(listItem);\r\n  }\r\n});\r\n\r\n\/\/ Keep height and placement of content using placeholder in place of TOC\r\ndocument.addEventListener(\"DOMContentLoaded\", function() {\r\n  const toc = document.querySelector('#toc');\r\n  const placeholderToc = document.querySelector('#placeholder-toc');\r\n\r\n  function setPlaceholderHeight() {\r\n    placeholderToc.style.height = `${toc.offsetHeight}px`;\r\n  }\r\n\r\n  \/\/ Set the initial height of the placeholder\r\n  setPlaceholderHeight();\r\n\r\n  \/\/ Update the height on window resize\r\n  window.addEventListener('resize', setPlaceholderHeight);\r\n});\r\n  const tocTitle = document.querySelector('#toc-title');\r\n\r\n\/\/ Sticky TOC and update heading\r\ndocument.addEventListener(\"DOMContentLoaded\", function() {\r\n  const toc = document.querySelector('#toc');\r\n  const footer = document.querySelector('.td-footer-template-wrap');\r\n  const tocParent = toc.parentElement;\r\n  const divTop = tocParent.getBoundingClientRect().top + window.pageYOffset;\r\n  const tocHeight = toc.offsetHeight;\r\n  const triggerPoint = divTop + tocHeight + 700;\r\n  const footerHeight = footer.offsetHeight;\r\n  const triggerFooterPoint = footer.getBoundingClientRect().top + window.pageYOffset - footerHeight - footerHeight - footerHeight;\r\n  const phtoc = document.querySelector('#placeholder-toc');\r\n  const headers = document.querySelectorAll('.td-post-content h2');\r\n  const navLinks = document.querySelectorAll('#toc-list a');\r\n\t\r\n\tconst panel2 = document.querySelector(\"#toc .list\");\r\n\tvar icon = document.querySelector(\".toc-icon\");\r\n\r\n  let activeLink = null; \/\/ Declare activeLink outside the loop\r\n\t\r\n  \/\/ Function to handle scroll and add\/remove .sticky class\r\n  function handleScroll() {\r\n    const windowTop = window.pageYOffset || document.documentElement.scrollTop;\r\n    let currentHeader = '';\r\n\r\n    \/\/ Highlight user progress as the heading comes\r\n    headers.forEach(header => {\r\n\t\tconst headerTop = header.offsetTop;\r\n\t\tconst headerHeight = header.clientHeight;\r\n\t\tif(window.innerWidth < 767){\r\n\t\t\ttocTitle.textContent = 'Table of Contents'; \/\/ Selalu pertahankan judul ini di mobile\r\n\t\t} else {\r\n\t\t\tif (window.scrollY >= (headerTop - headerHeight + 700)) {\r\n\t\t\t\tconst currentHeaderId = header.getAttribute('id');\r\n\t\t\t\tconst currentHeaderText = document.getElementById(currentHeaderId).textContent;\r\n\t\t\t\ttocTitle.textContent = currentHeaderText;\r\n\t\t\t\tcurrentHeader = currentHeaderId;\r\n\t\t\t}\r\n\t\t}\r\n\t});\r\n\r\n    navLinks.forEach(link => {\r\n      link.classList.remove('active');\r\n      if(currentHeader != '') {\r\n\t\t  if (link.getAttribute('href').includes(currentHeader)) {\r\n\t\t\t  link.classList.add('active');\r\n\t\t  }\r\n\t  }\r\n    });\r\n\r\n    \/\/ Update TOC title if sticky\r\n    if (windowTop > triggerPoint) {\r\n      if (!toc.classList.contains('sticky')) {\r\n        phtoc.style.display = \"block\";\r\n        toc.classList.add('sticky');\r\n        toc.style.width = `${tocParent.offsetWidth}px`; \/\/ Set width to match the parent element\r\n        toc.setAttribute('style', 'width: ' + tocParent.offsetWidth + 'px !important;');\r\n        toc.style.backgroundColor = \"#FFF\";\r\n\t\tpanel2.style.height = '0px';\r\n\t\t  icon.style.transform = \"rotate(180deg)\";\r\n\t\t  if(window.innerWidth < 767){\r\n\t\t\t  tocTitle.textContent = 'Table of Contents'; \/\/ Reset title\r\n       \t\t  toc.style.width = '150px'; \/\/ Set width to match the parent element\r\n\t\t  }\r\n      }\r\n      if (currentHeader) {\r\n        tocTitle.textContent = activeLink ? activeLink.textContent : \"\"; \/\/ Update title only if activeLink exists\r\n      }\r\n    } else {\r\n      toc.classList.remove('sticky');\r\n      phtoc.style.display = \"none\";\r\n      toc.style.width = 'unset'; \/\/ Reset to original width\r\n      toc.style.backgroundColor = \"#FFF\";\r\n      tocTitle.textContent = 'Table of Contents'; \/\/ Reset title\r\n\t\tpanel2.style.height = panel2.scrollHeight + \"px\";\r\n\t\ticon.style.transform = \"rotate(180deg)\";\r\n    }\r\n  }\r\n\r\n    \/\/ Attach the scroll event listener to the window\r\n    window.addEventListener('scroll', handleScroll);\r\n\r\n    \/\/ Initial call to handleScroll to set the correct state on load\r\n    handleScroll();\r\n});\r\n\t\r\n\t\/\/ Open toggle TOC\r\n\t  document.addEventListener(\"DOMContentLoaded\", function() {\r\n\t\tvar tocHeader = document.querySelector(\"#toc .header\");\r\n\t\tvar toc = document.querySelector(\"#toc\");\r\n\t\tvar icon = document.querySelector(\".toc-icon\");\r\n\t\tconst tocTitle = document.querySelector('#toc-title');\r\n\t\tconst tocs = document.querySelector('#toc.sticky');\r\n \t\tconst tocParent = toc.parentElement;\t\t  \r\n\r\n\t\t  tocHeader.addEventListener(\"click\", function() {\r\n\t\t\tvar panel = this.nextElementSibling;\r\n\t\t\tif (panel.style.height !== '0px') { \/\/ Check if height is not 0px\r\n\t\t\t  panel.style.height = '0px'; \/\/ Set height to 0 for full collapse\r\n\t\t\t  icon.style.transform = \"rotate(180deg)\";\r\n\t\t\t\tif(window.innerWidth > 768){\r\n\t\t\t\t\tif(!toc.classList.contains('sticky')){\r\n\t\t\t\t\t\ttoc.style.width = \"unset\";\r\n\t\t\t\t\t}\r\n\t\t\t\t\tif (toc.classList.contains('sticky')){\r\n\t\t\t\t\t\ttoc.style.width = '${tocParent.offsetWidth}px';\r\n\t\t\t\t\t\ttoc.setAttribute('style', 'width: ' + tocParent.offsetWidth + 'px !important;');\r\n\t\t\t\t\t}\r\n\t\t\t\t}\r\n\t\t\t\tif(window.innerWidth < 767){\r\n\t\t\t\t\ttoc.style.width = \"unset\"; \/\/ Reset width\r\n\t\t\t\t}\r\n\t\t\t\ttoc.style.backgroundColor = \"#FFF1F1\";\r\n\t\t\t} else {\r\n\t\t\t  panel.style.height = panel.scrollHeight + \"px\";\r\n\t\t\t  icon.style.transform = \"rotate(0deg)\";\r\n\t\t\t  toc.style.backgroundColor = \"#FFF\";\r\n\t\t\t  tocTitle.textContent = 'Table of Contents'; \/\/ Reset title\r\n\t\t\t\ttoc.style.paddingBottom = '24px';\r\n\t\t\t \tif(window.innerWidth < 767){\r\n\t\t\t\t\ttoc.style.width = `${tocParent.offsetWidth}px`; \/\/ Set width to match the parent element\r\n\t\t\t\t\ttoc.setAttribute('style', 'width: ' + tocParent.offsetWidth + 'px !important;');\r\n\t\t\t\t}\r\n\t\t\t}\r\n\t\t  });\r\n\r\n\t\t  \/\/ Close TOC when a link inside it is clicked\r\n\t\t  var tocLinks = document.querySelectorAll(\"#toc .list a\");\r\n\t\t  tocLinks.forEach(function(link) {\r\n\t\t\tlink.addEventListener(\"click\", function() {\r\n\t\t\t  var panel = document.querySelector(\"#toc .list\");\r\n\t\t\t  panel.style.height = '0px'; \/\/ Set height to 0 for full collapse\r\n\t\t\t  icon.style.transform = \"rotate(180deg)\";\r\n\t\t\t  toc.style.backgroundColor = \"#FFF\";\r\n\t\t\t});\r\n\t\t  });\r\n\t\t});\r\n\t\r\n\/\/ \tmake the heading at the center of the viewport\r\n\/\/ \tdocument.addEventListener('DOMContentLoaded', function() {\r\n\/\/     \/\/ Add click event listener to all links in the TOC list\r\n\/\/     document.querySelectorAll('#toc-list a').forEach(anchor => {\r\n\/\/         anchor.addEventListener('click', function (e) {\r\n\/\/             e.preventDefault(); \/\/ Prevent the default behavior of jumping to the anchor\r\n\/\/             const targetId = this.getAttribute('href').substring(1); \/\/ Get the ID of the target element\r\n\/\/             const targetElement = document.getElementById(targetId); \/\/ Get the target element\r\n\r\n\/\/             if (targetElement) {\r\n\/\/                 const headerHeight = document.querySelector('#toc .header').offsetHeight; \/\/ Get the height of the fixed header\r\n\/\/                 const windowHeight = window.innerHeight; \/\/ Get the height of the viewport\r\n\/\/                 const targetOffset = targetElement.offsetTop; \/\/ Get the top offset of the target element\r\n\/\/                 const scrollTo = targetOffset + (windowHeight \/ 2) + (headerHeight); \/\/ Calculate the scroll position to center the target element\r\n\r\n\/\/                 \/\/ Scroll to the calculated position smoothly\r\n\/\/                 window.scrollTo({\r\n\/\/                     top: scrollTo,\r\n\/\/                     behavior: 'smooth'\r\n\/\/                 });\r\n\/\/             }\r\n\/\/         });\r\n\/\/     });\r\n\/\/ });\r\n<\/script>\r\n\r\n<script>\r\n    \/\/ Scrollspy function to highlight the active TOC item based on the scroll position\r\n  function scrollSpy(tocClass) {\r\n    const scrollPosition = window.scrollY;\r\n\r\n    \/\/ Find the active h2 and h3 headings based on their position in the corresponding TOC\r\n    let activeH2 = null;\r\n    let activeH3 = null;\r\n\r\n    const tocItems = document.querySelectorAll(`.${tocClass} li`);\r\n    tocItems.forEach(item => {\r\n      const a = item.querySelector('a');\r\n      if (!a) return;\r\n      const href = a.getAttribute('href');\r\n      const targetId = href.substring(1); \/\/ Remove the '#' from the href to get the target ID\r\n      const targetElement = document.getElementById(targetId);\r\n      if (!targetElement) return;\r\n\r\n      const targetTop = targetElement.getBoundingClientRect().top + scrollPosition;\r\n      const nextItem = item.nextElementSibling;\r\n      const nextTop = nextItem ? nextItem.getBoundingClientRect().top + scrollPosition : Infinity;\r\n\r\n      if (targetTop <= scrollPosition + 150) {\r\n        if (a.parentElement.parentElement === tocItems) {\r\n          \/\/ The h2 heading is at the root level of the TOC\r\n          activeH2 = { id: targetId, level: 'h2' };\r\n        } else {\r\n          \/\/ The h3 heading is nested under an h2 heading\r\n          const parentH2 = a.parentElement.parentElement.previousElementSibling;\r\n          if (parentH2) {\r\n            const h2Link = parentH2.querySelector('a');\r\n            if (h2Link) {\r\n              const h2Href = h2Link.getAttribute('href');\r\n              const h2Id = h2Href.substring(1);\r\n              activeH2 = { id: h2Id, level: 'h2' };\r\n            }\r\n          }\r\n          activeH3 = { id: targetId, level: 'h3' };\r\n        }\r\n      }\r\n\r\n      if (targetTop > scrollPosition + 150 && nextTop > scrollPosition + 150 && !activeH3) {\r\n        \/\/ Reset the activeH2 when there are no more active h3 headings\r\n        activeH2 = null;\r\n      }\r\n    });\r\n\r\n    \/\/ Update the active state for the TOC items\r\n    tocItems.forEach(item => {\r\n      item.classList.remove('active');\r\n      const a = item.querySelector('a');\r\n      if (a) {\r\n        const href = a.getAttribute('href');\r\n        const targetId = href.substring(1);\r\n        if ((activeH2 && activeH2.id === targetId) || (activeH3 && activeH3.id === targetId)) {\r\n          item.classList.add('active');\r\n        }\r\n      }\r\n    });\r\n  }\r\n\r\n  \/\/ Call scrollSpy for each TOC on window scroll\r\n  const tocClasses = ['list_toc', 'list_toc_float']; \/\/ Add other TOC class names here if you have more than two instances\r\n  tocClasses.forEach(tocClass => {\r\n    window.addEventListener('scroll', () => scrollSpy(tocClass));\r\n  });\r\n<\/script>\r\n\t\r\n\r\n<!-- ToC List for desktop side bar, diganti jadi inject by php, di code snippet \"Sidebar Accordion\" -->\r\n<!-- <script>\r\n\tdocument.addEventListener('DOMContentLoaded', function() {\r\n        let headerCounter = 0; \/\/ Counter to generate unique IDs\r\n\r\n\t\t\/\/ Function to generate ID in header0, header1, etc. format\r\n\t\tfunction formatId() {\r\n\t\t\treturn `header-${headerCounter++}`; \/\/ ID format: header0, header1, etc.\r\n\t\t}\r\n\r\n\/\/ \t\tfunction formatId(text) {\r\n\/\/             return text.trim().replace(\/[^\\w\\d]+\/g, '_');\r\n\/\/         }\r\n\t\r\n        \/\/ Function to create nested list\r\n        function createNestedList(parentNode, children) {\r\n            if (children.length === 0) return;\r\n\r\n            const nestedUl = document.createElement('ul');\r\n            children.forEach(child => {\r\n                const nestedLi = document.createElement('li');\r\n                const nestedA = document.createElement('a');\r\n                nestedA.textContent = child.title;\r\n                nestedA.href = `#${child.id}`;\r\n                nestedLi.appendChild(nestedA);\r\n                nestedUl.appendChild(nestedLi);\r\n\r\n                if (child.children.length > 0) {\r\n                    createNestedList(nestedLi, child.children);\r\n                }\r\n            });\r\n\r\n            parentNode.appendChild(nestedUl);\r\n        }\r\n\r\n        \/\/ Object to store list of h2 and h3 with their titles\r\n        const headings = [];\r\n\r\n           \/\/ Get all h2 and h3 elements\r\n        \/\/ Get all h2 and h3 elements\r\n\t\tconst elements = document.querySelectorAll('.td-post-content h2');\r\n\r\n\t\telements.forEach(element => {\r\n\t\t\tif (element.tagName === 'H2') {\r\n\t\t\t\tconst id = formatId(); \/\/ Generate new ID\r\n\t\t\t\telement.id = id; \/\/ Set ID to h2 element\r\n\t\t\t\tif (element.textContent.toLowerCase() === \"key takeaways\") {return;} \/\/ Hide Key Takeaways di ToC\r\n\t\t\t\theadings.push({ level: 'h2', id: id, title: element.textContent, children: [] });\r\n\t\t\t} else if (element.tagName === 'H3') {\r\n\t\t\t\tconst id = formatId(); \/\/ Generate new ID\r\n\t\t\t\telement.id = id; \/\/ Set ID to h3 element\r\n\t\t\t\tif (headings.length > 0) {\r\n\t\t\t\t\theadings[headings.length - 1].children.push({ level: 'h3', id: id, title: element.textContent, children: [] });\r\n\t\t\t\t}\r\n\t\t\t}\r\n\t\t});\r\n       \/\/ Create HTML list from headings object\r\n\t\tconst ul = document.getElementById('list_toc');\r\n\t\tlet currentUl = ul;\r\n\t\theadings.forEach(heading => {\r\n\t\t\tconst li = document.createElement('li');\r\n\t\t\tconst a = document.createElement('a');\r\n\t\t\ta.textContent = heading.title;\r\n\t\t\ta.href = `#${heading.id}`; \/\/ Use the newly generated ID\r\n\t\t\tli.appendChild(a);\r\n\r\n\t\t\tif (heading.level === 'h2') {\r\n\t\t\t\tcurrentUl = li;\r\n\t\t\t\tul.appendChild(li);\r\n\t\t\t} else if (heading.level === 'h3') {\r\n\t\t\t\tif (!currentUl.lastElementChild || currentUl.lastElementChild.tagName !== 'UL') {\r\n\t\t\t\t\tconst nestedUl = document.createElement('ul');\r\n\t\t\t\t\tcurrentUl.appendChild(nestedUl);\r\n\t\t\t\t\tcurrentUl = nestedUl;\r\n\t\t\t\t}\r\n\t\t\t\tcurrentUl.appendChild(li);\r\n\t\t\t}\r\n\r\n\t\t\tcreateNestedList(li, heading.children);\r\n\t\t});\r\n\t\t\/\/ Get ul element with id 'list_toc'\r\n\t\tconst ulFloat = document.getElementById('list_toc');\r\n\r\n\t\t\/\/ Get content (child elements) from ul with id 'list_toc'\r\n\t\tconst clonedChildren = ulFloat.cloneNode(true).children;\r\n\r\n\t\t\/\/ Get ul element with id 'list_toc_float'\r\n\t\tconst ulToc = document.getElementById('list_toc_float');\r\n\r\n\t\t\/\/ Add content obtained from 'list_toc' to ul with id 'list_toc_float'\r\n\t\tulToc.append(...clonedChildren);\r\n\r\n\r\n        \/\/ Function to get navbar height\r\n\t\tfunction getNavbarHeight() {\r\n\t\t\tconst navbar = document.getElementById('tdi_34');\r\n\t\t\treturn navbar ? navbar.offsetHeight : 0;\r\n\t\t}\r\n\r\n\t\t\/\/ Function to add scroll position offset\r\n\t\tfunction scrollToElementWithOffset(elementId) {\r\n\t\t\tconst element = document.getElementById(elementId);\r\n\t\t\tif (element) {\r\n\t\t\t\tconst offset = getNavbarHeight();\r\n\t\t\t\tconst elementPosition = element.getBoundingClientRect().top;\r\n\t\t\t\tconst offsetPosition = elementPosition - offset - 40;\r\n\r\n\t\t\t\twindow.scrollBy({\r\n\t\t\t\t\ttop: offsetPosition,\r\n\t\t\t\t\tbehavior: 'smooth'\r\n\t\t\t\t});\r\n\t\t\t}\r\n\t\t}\r\n\r\n\t\t\/\/ Function to handle title link click\r\n\t\tfunction handleTitleClick(event) {\r\n\t\t\tevent.preventDefault();\r\n\t\t\tconst href = event.target.getAttribute('href').substr(1);\r\n\t\t\tscrollToElementWithOffset(href);\r\n\t\t}\r\n\r\n\t\t\/\/ Add event listener for all title links\r\n\t\tconst titleLinks = document.querySelectorAll('a[href^=\"#\"]');\r\n\t\ttitleLinks.forEach(link => {\r\n\t\t\tlink.addEventListener('click', handleTitleClick);\r\n\t\t});\r\n\t});\r\n    <\/script> -->\r\n<\/p>\n<h2><b>What is a Journal Entry?<\/b><\/h2>\n<p>A journal entry in accounting records financial transactions in a company\u2019s books. To create a journal entry, you document the transaction details in the books. This is part of the second step in the accounting cycle, where journal entries are transferred to the <a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/example-of-ledger\/\">general ledger<\/a>.<\/p>\n<p>Journal entries are a key part of any <a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/accounting-system\/\">accounting system<\/a> and form the base of accurate records Each journal entry in the general ledger includes the transaction date, amount, affected accounts with account numbers, and a description.<\/p>\n<p>Additionally, it may contain a reference number, such as a check number, along with a short note about the transaction. Every entry has a left-hand side (debit) and a right-hand side (credit) to uphold the accounting equation:<\/p>\n<p><b>Assets = Liabilities + Equity<\/b><\/p>\n<p>These entries establish a complete, chronological record, listing the transaction date, impacted accounts, amounts, and a concise description.<\/p>\n<h3 class=\"p1\"><strong>Where is a journal entry documented?<\/strong><\/h3>\n<p class=\"p1\">A journal entry is recorded in the\u00a0general ledger\u00a0of a business&#8217;s accounting system. This ledger serves as the primary repository for all financial transactions, ensuring that each entry is properly documented and can be referenced in financial statements.<\/p>\n<p class=\"p1\">In addition to the general ledger, journal entries may also be recorded in\u00a0<a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/example-of-ledger\/\">subsidiary ledgers<\/a>, which detail specific accounts and transactions before being summarized into the general ledger. Furthermore, <a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/adjusting-journals-entries\/\">adjusting journal entries<\/a> are often made at the end of an accounting period to ensure that income and expenses are recorded in the correct period.<\/p>\n<style>\r\n    * {\r\n        margin: 0;\r\n        padding: 0;\r\n        box-sizing: border-box;\r\n        font-family: 'Roboto', sans-serif;\r\n    }\r\n\r\n    .hashylogo {\r\n        width: 280px !important;\r\n        height: 70px !important;\r\n    }\r\n\t\r\n\t.hashyrobot {\r\n\t\tposition: absolute;\r\n\t\ttop: 21%;\r\n        left: 71%;\r\n\t\tz-index: 1;\r\n\t\toverflow-y: hidden;\r\n\t}\r\n\r\n    .hashy {\r\n        display: flex;\r\n        gap: 16px;\r\n        flex-direction: column;\r\n    }\r\n\r\n    .hashy-fact {\r\n        width: 200px;\r\n        height: 55px;\r\n        justify-content: center;\r\n        color: #FFF;\r\n        text-align: center;\r\n        font-family: Roboto;\r\n        font-size: 20px;\r\n      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        <h3>Need to know!<\/h3>\r\n\r\n                <p class=\"subtitle\">AI automates journal entry creation, reducing errors and saving time. With Hashy, HashMicro\u2019s AI assistant, you can generate accurate entries instantly. Hashy ensures compliance and consistency for efficient financial management.<\/p>\r\n\r\n                <img decoding=\"async\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/Character.webp\" width=\"194\" height=\"237\" alt=\"\" class=\"hashyrobot\">\r\n\r\n               <a href=\"https:\/\/www.hashmicro.com\/ph\/free-product-tour\/?medium=cta-button-fun-fact\" class=\"hashy-cta\" style=\"display: flex;\">\r\n\t\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"20\" height=\"15\" viewBox=\"0 0 36 28\" fill=\"none\">\r\n  <path d=\"M17.7875 22.5125C20.7747 23.1401 21.7146 24.0249 22.3263 26.9054C22.3463 26.9933 22.3964 27.0718 22.4684 27.1281C22.5404 27.1844 22.6299 27.215 22.7222 27.215C22.8145 27.215 22.904 27.1844 22.976 27.1281C23.048 27.0718 23.0981 26.9933 23.1181 26.9054C23.7619 23.9936 24.6697 23.0773 27.6248 22.5125C27.7148 22.493 27.7954 22.4441 27.8532 22.374C27.9109 22.3038 27.9424 22.2165 27.9424 22.1266C27.9424 22.0366 27.9109 21.9493 27.8532 21.8792C27.7954 21.809 27.7148 21.7601 27.6248 21.7406C24.6439 21.1131 23.704 20.2282 23.1181 17.3477C23.0981 17.2599 23.048 17.1813 22.976 17.1251C22.904 17.0688 22.8145 17.0381 22.7222 17.0381C22.6299 17.0381 22.5404 17.0688 22.4684 17.1251C22.3964 17.1813 22.3463 17.2599 22.3263 17.3477C21.6825 20.2533 20.7747 21.1695 17.8196 21.7406C17.7285 21.7563 17.6456 21.8018 17.5847 21.8697C17.5237 21.9376 17.4885 22.0238 17.4847 22.1139C17.481 22.2041 17.5089 22.2927 17.564 22.3652C17.6191 22.4378 17.6979 22.4897 17.7875 22.5125Z\" fill=\"#AF48F2\"\/>\r\n  <path d=\"M0.643802 13.5823C7.6355 14.8374 9.54115 16.7201 10.8288 23.5103C10.8288 23.6767 10.8966 23.8363 11.0173 23.954C11.1381 24.0717 11.3018 24.1378 11.4726 24.1378C11.6433 24.1378 11.8071 24.0717 11.9278 23.954C12.0485 23.8363 12.1164 23.6767 12.1164 23.5103C13.404 16.695 15.3354 14.8374 22.2949 13.5823C22.4656 13.5823 22.6294 13.5161 22.7501 13.3984C22.8709 13.2808 22.9387 13.1211 22.9387 12.9547C22.9387 12.7883 22.8709 12.6286 22.7501 12.5109C22.6294 12.3933 22.4656 12.3271 22.2949 12.3271C15.3032 11.072 13.404 9.22071 12.1164 2.40539C12.1164 2.23895 12.0485 2.07933 11.9278 1.96164C11.8071 1.84395 11.6433 1.77783 11.4726 1.77783C11.3018 1.77783 11.1381 1.84395 11.0173 1.96164C10.8966 2.07933 10.8288 2.23895 10.8288 2.40539C9.54115 9.22071 7.60975 11.072 0.643802 12.3271C0.473055 12.3271 0.309302 12.3933 0.188565 12.5109C0.067829 12.6286 0 12.7883 0 12.9547C0 13.1211 0.067829 13.2808 0.188565 13.3984C0.309302 13.5161 0.473055 13.5823 0.643802 13.5823Z\" fill=\"#AF48F2\"\/>\r\n  <path d=\"M22.8576 7.12452C27.2547 7.84621 28.2848 8.85659 29.0316 13.1428C29.0418 13.2081 29.0757 13.2677 29.1271 13.3107C29.1784 13.3538 29.2439 13.3774 29.3117 13.3774C29.3794 13.3774 29.445 13.3538 29.4963 13.3107C29.5477 13.2677 29.5816 13.2081 29.5917 13.1428C30.3643 8.85659 31.3751 7.85249 35.7723 7.12452C35.8371 7.11097 35.8952 7.07617 35.9368 7.02592C35.9785 6.97567 36.0012 6.91301 36.0012 6.84839C36.0012 6.78378 35.9785 6.72112 35.9368 6.67086C35.8952 6.62061 35.8371 6.58581 35.7723 6.57226C31.3751 5.84429 30.3643 4.8402 29.5917 0.553954C29.5816 0.488664 29.5477 0.429094 29.4963 0.38605C29.445 0.343005 29.3794 0.319336 29.3117 0.319336C29.2439 0.319336 29.1784 0.343005 29.1271 0.38605C29.0757 0.429094 29.0418 0.488664 29.0316 0.553954C28.2848 4.8402 27.2547 5.84429 22.8576 6.59737C22.8029 6.61786 22.7559 6.65402 22.7228 6.70107C22.6896 6.74812 22.6719 6.80386 22.6719 6.86094C22.6719 6.91802 22.6896 6.97376 22.7228 7.02082C22.7559 7.06787 22.8029 7.10403 22.8576 7.12452Z\" fill=\"#AF48F2\"\/>\r\n<\/svg>\r\n                <p>Get a Free Demo Now!<\/p>\r\n            <\/a>\r\n            <\/div>\r\n        <\/div>\r\n    <\/div>\n<h2><b>The Purpose of a Journal Entry<\/b><\/h2>\n<p>Journal entries are essential for maintaining financial accuracy and enabling reliable financial reporting.<\/p>\n<p>Their main objectives include:<\/p>\n<ol>\n<li><b>Recording Transactions<\/b>: Each financial transaction is methodically recorded to ensure no details are missed.<\/li>\n<li><b>Tracking Activity<\/b>: Journal entries establish a sequential log of every economic event that affects a business.<\/li>\n<li><b>Supporting Audit Trails<\/b>: They allow auditors to trace any inconsistencies back to their source, safeguarding financial accuracy.<\/li>\n<li><b>Preparing Financial Statements<\/b>: By promoting consistent and precise record-keeping, journal entries form the foundation for generating the income statement, balance sheet, and cash flow statement.<\/li>\n<li><strong data-start=\"3\" data-end=\"28\" data-is-only-node=\"\">Practical Application<\/strong>: Reviewing an example of journal entry helps in clearly understanding how theoretical principles translate into actual accounting practices.<\/li>\n<\/ol>\n<h2><b>What Should Be Included in a Journal Entry?<\/b><\/h2>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-11750\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/personal-journal-entry-example.webp\" alt=\"personal journal entry example\" width=\"1200\" height=\"675\" srcset=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/personal-journal-entry-example.webp 1200w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/personal-journal-entry-example-300x169.webp 300w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/personal-journal-entry-example-1024x576.webp 1024w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/personal-journal-entry-example-768x432.webp 768w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/personal-journal-entry-example-747x420.webp 747w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/personal-journal-entry-example-150x84.webp 150w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/personal-journal-entry-example-696x392.webp 696w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/personal-journal-entry-example-1068x601.webp 1068w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p>An accounting journal entry consists of the following components:<\/p>\n<ol>\n<li><b>Date of the Transaction<\/b>: Maintains chronological order and period accuracy.<\/li>\n<li><b>Account Names\/Numbers<\/b>: Identifies the specific accounts affected by the transaction.<\/li>\n<li><b>Debit and Credit Amounts<\/b>: Displays the financial value involved, ensuring the accounting equation remains balanced.<\/li>\n<li><b>Description or Narrative<\/b>: Briefly explain the transaction for context and clarity.<\/li>\n<\/ol>\n<p>For example, imagine a business in the Philippines obtains a loan of \u20b110,000. The journal entry would be:<\/p>\n<ul>\n<li><b>Date<\/b>: [Date of Transaction]<\/li>\n<li><b>Debit<\/b>: Cash \u20b110,000<\/li>\n<li><b>Credit<\/b>: Loans Payable \u20b110,000<\/li>\n<li><b>Description<\/b>: To record the borrowing of a \u20b110,000 loan.<\/li>\n<\/ul>\n<p>This entry ensures that the company\u2019s cash (an asset, thus debited) increases, balanced by a corresponding liability (loans payable, thus credited), following the <a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/accounting-equation\/\">accounting equation<\/a>.<\/p>\n<h2><b>Types of Journal Entries<\/b><\/h2>\n<p>Companies in the Philippines commonly rely on two types of journal entries: the <a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/sales-journal\/\">sales journal<\/a> entry and the allowance for doubtful accounts entry. Let\u2019s break down each one:<\/p>\n<h3><b>1. Sales Journal Entry<\/b><\/h3>\n<p>This entry records your business&#8217;s income from selling goods or services. It captures the sales amount, any decrease in inventory due to customer purchases, and any sales tax owed. The specifics may vary slightly depending on the customer&#8217;s payment method.<\/p>\n<h3><b>2. Allowance for Doubtful Accounts Entry<\/b><\/h3>\n<p>Known as a contra-asset, this entry lowers the company\u2019s receivables to account for potential credit risks and uncollectible debts. It helps estimate potential losses from accounts that may remain unpaid, which provides a more realistic view of expected revenue.<\/p>\n<p>For businesses managing <a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/notes-receivable\/\">notes receivable<\/a>, recognizing potential bad debts ensures a more accurate financial statement. Proper classification of notes receivable helps track outstanding amounts and assess repayment reliability.<\/p>\n<p>Other than the two main types, here are other types of journal entries:<\/p>\n<ul>\n<li><b>Opening Entries<\/b>: These entries set the initial balances in various ledger accounts.<\/li>\n<li><b>Transfer Entries<\/b>: These entries move amounts between accounts for an accurate impact on the financial statements.<\/li>\n<li><a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/closing-entry\/\"><b>Closing Entry<\/b><\/a>: Recorded at the end of the accounting period to shift balances from temporary to permanent accounts.<\/li>\n<li><b>Adjusting Entries<\/b>: Prepared before finalizing financial statements, these entries adjust for items not yet recorded by period-end.<\/li>\n<li><b>Compound Entries<\/b>: Multiple accounts with several debits, credits, or both in a single entry.<\/li>\n<li><b>Reversing Entries<\/b>: Made at the start of a new period, these <a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/reversing-entries\/\">reversing entries<\/a> undo certain prior-period adjustments.<\/li>\n<\/ul>\n<p>Each type of journal entry aligns with specific\u00a0<span style=\"margin: 0px; padding: 0px;\"><a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/types-of-accounting\/\" target=\"_blank\" rel=\"noopener\">accounting<\/a> methods, which are suited to specific situations and<\/span>\u00a0requirements.<\/p>\n<h2 class=\"p1\"><strong>Best Practices for a Journal Entry<\/strong><\/h2>\n<p class=\"p1\">Preparing journal entries efficiently and documenting them accurately can be challenging. Here are some recommended best practices:<\/p>\n<ol>\n<li class=\"p1\"><strong><span class=\"s1\">Avoid High-Volume Transactions<\/span><\/strong><span class=\"s1\"><span class=\"s1\">: <\/span><\/span>Generally, refrain from using journal entries for high-volume transactions like customer billings or supplier invoices. Such transactions are better managed through <a href=\"https:\/\/www.hashmicro.com\/ph\/accounting-software\">specialized accounting software<\/a> that provides standardized online forms. Once completed, these forms automatically generate the necessary accounting records, making journal entries unnecessary for these frequent activities.<\/li>\n<li>\n<p class=\"p1\"><span class=\"s1\"><strong>Utilize a Journal Entry Template<\/strong>: Creating a template within your accounting software for recurring journal entries is beneficial<\/span>. This template should include the accounts typically debited and credited, allowing for quick and easy completion of new entries. Using templates not only enhances efficiency but also minimizes the risk of errors.<\/p>\n<\/li>\n<li>\n<p class=\"p1\"><span class=\"s1\" style=\"font-family: Verdana, BlinkMacSystemFont, -apple-system, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Open Sans', 'Helvetica Neue', sans-serif;\"><strong>Establish a Retention Policy<\/strong>:\u00a0<\/span><span style=\"font-family: Verdana, BlinkMacSystemFont, -apple-system, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Open Sans', 'Helvetica Neue', sans-serif;\">Journal entries and their accompanying documentation should be retained for several years, at least until the business&#8217;s financial statements no longer need to be audited. The corporate archiving policy should clearly outline the minimum retention period for journal entries.<\/span><\/p>\n<\/li>\n<\/ol>\n<h2><b>Methods of Making a Journal Entry<\/b><\/h2>\n<p>There are two primary bookkeeping methods\u2014and, consequently, two ways to make journal entries: single-entry and double-entry.<\/p>\n<p><b>The double-entry bookkeeping<\/b> method can be compared to a GPS showing where your money comes from and where it\u2019s headed. It records both sides of a transaction, giving a full picture of financial movement.<\/p>\n<p><b>Single-entry bookkeeping<\/b>, on the other hand, is straightforward. If you spend money on office supplies, you simply record it. If you make a sale, you log it. There\u2019s no need to specify the account funding the purchase or where sales deposits go.<\/p>\n<p>While single-entry\u00a0<span style=\"margin: 0px; padding: 0px;\">bookkeeping is simpler, double-entry bookkeeping is far more common today because it provides a comprehensive view of a business\u2019s financial health. If you struggle with double-entry bookkeeping, having a reliable tool like <a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/top-accounting-software-philippines\/\" target=\"_blank\" rel=\"noopener\"><span data-sheets-root=\"1\">accounting platforms for Philippine businesses<\/span><\/a>\u00a0<\/span>will help a lot.<\/p>\n<p>Besides, such software also has other functions that accounting teams can use for a complete financial process. <i>Ano pa hinihintay mo?<\/i> Try out the free demo by clicking on the banner below.<\/p>\n<a href=\"https:\/\/www.hashmicro.com\/ph\/free-product-tour\/?medium=free-product-tour\" target=\"_blank\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/bir-demo-gratis.webp\" data-desktop-src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/bir-demo-gratis.webp\" data-mobile-src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/mobile-bir-demo-gratis.webp\" alt=\"FreeDemo\" class=\"responsive-image-banner\" width=\"620\" height=\"255\"><\/a>\r\n\r\n<script>\r\n    \/\/ check which image to use based on screensize\r\n    document.addEventListener(\"DOMContentLoaded\", function() {\r\n        function updateImageSource() {\r\n            var images = document.querySelectorAll('.responsive-image-banner');\r\n            var screenWidth = window.innerWidth;\r\n\r\n            images.forEach(function(img) {\r\n                var mobileSrc = img.getAttribute('data-mobile-src');\r\n                var desktopSrc = img.getAttribute('data-desktop-src');\r\n\r\n                if (screenWidth < 576 && mobileSrc) {\r\n                    img.setAttribute('src', mobileSrc);\r\n                } else {\r\n                    img.setAttribute('src', desktopSrc);\r\n                }\r\n            });\r\n        }\r\n\r\n        \/\/ Initial check\r\n        updateImageSource();\r\n\r\n        \/\/ Update on resize\r\n        window.addEventListener('resize', updateImageSource);\r\n    });\r\n<\/script>\n<h2><b>How to Track Journal Entry<\/b><\/h2>\n<p><a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/progress-billing\/\">Accurate journal entries<\/a> lay the groundwork for dependable financial records and meaningful reporting. Following a few key steps can help keep things consistent. Here\u2019s how to prepare a journal entry:<\/p>\n<ol>\n<li><b>Organize Transaction Information<\/b>: Collect and verify all relevant transaction documents, such as invoices and receipts.<\/li>\n<li><b>Analyze Transactions<\/b>: Determine which accounts are affected and assess the transaction amount.<\/li>\n<li><b>Apply the Accounting Equation<\/b>: Confirm that Assets = Liabilities + Equity after each transaction.<\/li>\n<li><b>Apply Debit and Credit Rules<\/b>: Identify which account requires a debit and which a credit.<\/li>\n<li><b>Record the Entry<\/b>: Enter the transaction into the journal with all relevant details.<\/li>\n<li><b>Review<\/b>: Regularly review journal entries to maintain accuracy and consistency in financial records.<\/li>\n<\/ol>\n<p>Effective journal entry tracking ensures that financial records remain accurate and support reliable decision-making. Proper methods enhance transparency and simplify future audits. Therefore, regular tracking is needed to keep the records intact.<\/p>\n<p>Strategies include:<\/p>\n<ol>\n<li><b>Use Accounting Software<\/b>: Leverage modern accounting tools that simplify data entry, tracking, and comprehensive reporting.<\/li>\n<li><b>Conduct Regular Audits<\/b>: Plan regular internal audits to verify entries, ensuring accuracy and completeness.<\/li>\n<li><b>Assign Unique Reference Numbers<\/b>: Give each entry a distinct reference number, enabling quick retrieval and verification.<\/li>\n<li><b>Maintain Detailed Documentation<\/b>: Keep comprehensive documentation for each transaction to support the corresponding journal entries.<\/li>\n<\/ol>\n<h2><strong>Debit and Credit in Journal Entry<\/strong><\/h2>\n<p>In accounting, <strong>debit<\/strong>\u00a0and <strong>credit<\/strong> form the foundation of any journal entry definition. These entries represent the dual aspects of every transaction, ensuring that the accounting equation remains balanced. A <strong>debit increases assets or expenses<\/strong>, while a <strong>credit increases liabilities, equity, or revenue<\/strong>.<\/p>\n<p>To illustrate, consider a simple example of journal entry: <strong>when a business purchases office supplies for cash, the supplies account is debited, and the cash account is credited.<\/strong> This dual entry ensures both the acquisition of supplies and the reduction in cash are accurately recorded. Such journal entry examples are essential for maintaining transparent and error-free financial records.<\/p>\n<p>Using an accounting journal example can help businesses understand how debits and credits are applied in real-world scenarios. Mastering debit and credit principles is key to accurate accounting and effective financial management, from recording daily expenses to managing complex transactions.<\/p>\n<h2><b>Journal Entry Examples<\/b><\/h2>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-11747\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/journal-entry-example-accounting.webp\" alt=\"journal entry example accounting\" width=\"1200\" height=\"675\" srcset=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/journal-entry-example-accounting.webp 1200w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/journal-entry-example-accounting-300x169.webp 300w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/journal-entry-example-accounting-1024x576.webp 1024w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/journal-entry-example-accounting-768x432.webp 768w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/journal-entry-example-accounting-747x420.webp 747w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/journal-entry-example-accounting-150x84.webp 150w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/journal-entry-example-accounting-696x392.webp 696w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/journal-entry-example-accounting-1068x601.webp 1068w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p>An example of journal entry provides practical insights into the real-world application of accounting principles. These transactions are from Luna Tech Solutions, a fictional small IT services and equipment supply business based in Manila. Luna Tech Solutions provides tech support to local businesses, sells IT equipment, and manages its own inventory.<\/p>\n<p>The following <a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/general-journal\/\">general journal<\/a> entries illustrate how the company records common business transactions to ensure its financial records remain accurate and well-organized.<\/p>\n<h3>Example 1: Procuring inventory on credit terms<\/h3>\n<p><b>Date: January 5, 2023<\/b><\/p>\n<ul>\n<li><b>Debit<\/b>: Inventory \u20b115,000<\/li>\n<li><b>Credit<\/b>: Accounts Payable \u20b115,000<\/li>\n<li><b>Description<\/b>: Purchased 10 units of computer monitors on credit.<\/li>\n<\/ul>\n<p><b>Explanation<\/b>:<br \/>\nLuna Tech Solutions bought computer monitors to add to their inventory but hasn\u2019t paid the supplier yet. The &#8220;Inventory&#8221; account is debited (increased) by \u20b115,000 to reflect the new stock, and &#8220;Accounts Payable&#8221; is credited to show the amount owed to the supplier.<\/p>\n<h3>Example 2: Documenting asset value reduction<\/h3>\n<p><b>Date: January 31, 2023<\/b><\/p>\n<ul>\n<li><b>Debit<\/b>: Depreciation Expense \u20b12,500<\/li>\n<li><b>Credit<\/b>: Accumulated Depreciation \u20b12,500<\/li>\n<li><b>Description<\/b>: Monthly depreciation recorded for office equipment.<\/li>\n<\/ul>\n<p><b>Explanation<\/b>:<br \/>\nEach month, Luna Tech Solutions records depreciation for its office equipment, like computers and printers. &#8220;Depreciation Expense&#8221; is debited to reflect the monthly cost of equipment wear and tear, while &#8220;Accumulated Depreciation&#8221; is credited to track the total depreciation amount on the equipment.<\/p>\n<h3>Example 3: Cash income from services rendered<\/h3>\n<p><b>Date: February 2, 2023<\/b><\/p>\n<ul>\n<li><b>Debit<\/b>: Cash \u20b110,000<\/li>\n<li><b>Credit<\/b>: Service Revenue \u20b110,000<\/li>\n<li><b>Description<\/b>: Received payment in cash for on-site tech support provided to a corporate client.<\/li>\n<\/ul>\n<p><b>Explanation<\/b>:<br \/>\nLuna Tech Solutions received cash from a client for providing on-site tech support services. &#8220;Cash&#8221; is debited (increased) by \u20b110,000 for the received amount, and &#8220;Service Revenue&#8221; is credited to reflect income from the service provided.<\/p>\n<h3>Example 4: Employee Salary Payment<\/h3>\n<p><b>Date: February 15, 2023<\/b><\/p>\n<ul>\n<li><b>Debit<\/b>: Salaries Expense \u20b120,000<\/li>\n<li><b>Credit<\/b>: Cash \u20b120,000<\/li>\n<li><b>Description<\/b>: Paid employee salaries for the first half of February.<\/li>\n<\/ul>\n<p><b>Explanation<\/b>:<br \/>\nLuna Tech Solutions pays out \u20b120,000 in employee salaries for the first half of the month. &#8220;Salaries Expense&#8221; is debited to show this as a cost, while &#8220;Cash&#8221; is credited, indicating a reduction in the company\u2019s cash for this expense.<\/p>\n<h3>Example 5: Loan Payment with Interest<\/h3>\n<p><b>Date: February 20, 2023<\/b><\/p>\n<ul>\n<li><b>Debit<\/b>: Loans Payable \u20b18,000<\/li>\n<li><b>Debit<\/b>: Interest Expense \u20b1500<\/li>\n<li><b>Credit<\/b>: Cash \u20b18,500<\/li>\n<li><b>Description<\/b>: Partial loan repayment with interest.<\/li>\n<\/ul>\n<p><b>Explanation<\/b>:<br \/>\nLuna Tech Solutions pays \u20b18,500 toward a loan, which includes \u20b18,000 in principal and \u20b1500 in interest. &#8220;Loans Payable&#8221; is debited to decrease the loan balance, &#8220;<a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/interest-expense\/\">Interest Expense<\/a>&#8221; is debited for the cost of interest, and &#8220;Cash&#8221; is credited to show the cash outflow.<\/p>\n<h3>Journal Entry Examples with Tables<\/h3>\n<p>The transactions in this lesson relate to Juan&#8217;s Car Repair Shop, our fictional small business in Manila. Please note that all transactions are simplified examples to aid learning.<\/p>\n<p>Let\u2019s get started.<\/p>\n<p><b>Transaction #1<\/b>: On January 1, 2023, Juan invested \u20b1500,000 to start Juan&#8217;s Car Repair Shop. The journal entry should increase the company\u2019s Cash and establish Juan\u2019s capital account.<\/p>\n<table>\n<tbody>\n<tr>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Date<\/b><\/td>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Particulars<\/b><\/td>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Debit<\/b><\/td>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Credit<\/b><\/td>\n<\/tr>\n<tr>\n<td>Jan 1<\/td>\n<td>Cash<\/td>\n<td>500,000<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td>Juan, Capital<\/td>\n<td><\/td>\n<td>500,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>Transaction #2<\/b>: On January 5, Juan&#8217;s Car Repair Shop paid registration fees of \u20b118,000.<\/p>\n<table>\n<tbody>\n<tr>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Date<\/b><\/td>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Particulars<\/b><\/td>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Debit<\/b><\/td>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Credit<\/b><\/td>\n<\/tr>\n<tr>\n<td>Jan 5<\/td>\n<td>Registration Expense<\/td>\n<td>18,000<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td>Cash<\/td>\n<td><\/td>\n<td>18,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>Transaction #3<\/b>: On January 8, the shop purchased tools and equipment for \u20b1150,000, paid in cash.<\/p>\n<table>\n<tbody>\n<tr>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Date<\/b><\/td>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Particulars<\/b><\/td>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Debit<\/b><\/td>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Credit<\/b><\/td>\n<\/tr>\n<tr>\n<td>Jan 8<\/td>\n<td>Tools and Equipment<\/td>\n<td>150,000<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td>Cash<\/td>\n<td><\/td>\n<td>150,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>Transaction #4<\/b>: On January 10, the shop bought supplies worth \u20b125,000 on credit.<\/p>\n<table>\n<tbody>\n<tr>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Date<\/b><\/td>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Particulars<\/b><\/td>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Debit<\/b><\/td>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Credit<\/b><\/td>\n<\/tr>\n<tr>\n<td>Jan 10<\/td>\n<td>Supplies<\/td>\n<td>25,000<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td>Accounts Payable<\/td>\n<td><\/td>\n<td>25,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>Transaction #5<\/b>: On January 12, the shop earned \u20b180,000 in repair service revenue, receiving cash.<\/p>\n<table>\n<tbody>\n<tr>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Date<\/b><\/td>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Particulars<\/b><\/td>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Debit<\/b><\/td>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Credit<\/b><\/td>\n<\/tr>\n<tr>\n<td>Jan 12<\/td>\n<td>Cash<\/td>\n<td>80,000<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td>Service Revenue<\/td>\n<td><\/td>\n<td>80,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>Transaction #6<\/b>: On January 15, Juan contributed an additional \u20b1200,000 to the business.<\/p>\n<table>\n<tbody>\n<tr>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Date<\/b><\/td>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Particulars<\/b><\/td>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Debit<\/b><\/td>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Credit<\/b><\/td>\n<\/tr>\n<tr>\n<td>Jan 15<\/td>\n<td>Cash<\/td>\n<td>200,000<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td>Juan, Capital<\/td>\n<td><\/td>\n<td>200,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>Transaction #7<\/b>: On January 20, the shop rendered services to a corporate client for \u20b1120,000 on account, due in 30 days.<\/p>\n<table>\n<tbody>\n<tr>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Date<\/b><\/td>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Particulars<\/b><\/td>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Debit<\/b><\/td>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Credit<\/b><\/td>\n<\/tr>\n<tr>\n<td>Jan 20<\/td>\n<td>Accounts Receivable<\/td>\n<td>120,000<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td>Service Revenue<\/td>\n<td><\/td>\n<td>120,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>Transaction #8<\/b>: On January 25, the shop collected \u20b160,000 from a previous account receivable.<\/p>\n<table>\n<tbody>\n<tr>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Date<\/b><\/td>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Particulars<\/b><\/td>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Debit<\/b><\/td>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Credit<\/b><\/td>\n<\/tr>\n<tr>\n<td>Jan 25<\/td>\n<td>Cash<\/td>\n<td>60,000<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td>Accounts Receivable<\/td>\n<td><\/td>\n<td>60,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>Transaction #9<\/b>: On January 28, Juan withdrew \u20b150,000 for personal use.<\/p>\n<table>\n<tbody>\n<tr>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Date<\/b><\/td>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Particulars<\/b><\/td>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Debit<\/b><\/td>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Credit<\/b><\/td>\n<\/tr>\n<tr>\n<td>Jan 28<\/td>\n<td>Juan, Withdrawals<\/td>\n<td>50,000<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td>Cash<\/td>\n<td><\/td>\n<td>50,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>Transaction #10<\/b>: On January 31, the shop paid \u20b145,000 in salaries to employees.<\/p>\n<table>\n<tbody>\n<tr>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Date<\/b><\/td>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Particulars<\/b><\/td>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Debit<\/b><\/td>\n<td style=\"background-color: #990000; color: #ffffff; padding: 5px; text-align: center;\"><b>Credit<\/b><\/td>\n<\/tr>\n<tr>\n<td>Jan 31<\/td>\n<td>Salaries Expense<\/td>\n<td>45,000<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td>Cash<\/td>\n<td><\/td>\n<td>45,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>These transactions are a practical guide to recording journal entries for a small business in the Philippines.<\/p>\n<h2><b>Making Journal Entry Easier with HashMicro Accounting Software<\/b><\/h2>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-11756\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/HashMicro-Accounting-Software-for-Multiple-Businesses-3.webp\" alt=\"hashmicro accounting software\" width=\"1470\" height=\"900\" srcset=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/HashMicro-Accounting-Software-for-Multiple-Businesses-3.webp 1470w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/HashMicro-Accounting-Software-for-Multiple-Businesses-3-300x184.webp 300w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/HashMicro-Accounting-Software-for-Multiple-Businesses-3-1024x627.webp 1024w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/HashMicro-Accounting-Software-for-Multiple-Businesses-3-768x470.webp 768w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/HashMicro-Accounting-Software-for-Multiple-Businesses-3-686x420.webp 686w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/HashMicro-Accounting-Software-for-Multiple-Businesses-3-150x92.webp 150w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/HashMicro-Accounting-Software-for-Multiple-Businesses-3-696x426.webp 696w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/HashMicro-Accounting-Software-for-Multiple-Businesses-3-1068x654.webp 1068w\" sizes=\"(max-width: 1470px) 100vw, 1470px\" \/><\/p>\n<p>Let\u2019s face it: doing accounting by hand can be exhausting. It takes time, mistakes happen, and losing track of records is easy. <i>Nakakabaliw, di ba?<\/i> These issues make managing finances a real struggle for many business owners.<\/p>\n<p>With <a href=\"https:\/\/www.hashmicro.com\/ph\/accounting-software\">HashMicro Accounting Software<\/a>, these worries fade away. The software handles the details for you, reducing errors and saving you work hours. Your records stay organized, accurate, and ready when you need them.<\/p>\n<p>HashMicro provides several features to help with making journal entries:<\/p>\n<ul>\n<li><b>Bank Integration &#8211; Auto Reconciliation: <\/b>This feature is ideal because it automatically matches bank transactions with internal records.<\/li>\n<li><b>Multi-Level Analytical (Compare FS per Project, Branch, etc.): <\/b>Journal entries are often categorized by projects, branches, or specific accounts. This feature provides in-depth analysis across various levels.<\/li>\n<li><b>Cash Flow Reports: <\/b>Since journal entries contribute to cash flow records, it is valuable to have real-time cash flow reports directly linked to them.<\/li>\n<li><b>Financial Statement with Budget Comparison: <\/b>Journal entries impact financial statements, so a feature that compares actual finances against the budget provides valuable insights.<\/li>\n<li><b>Profit &amp; Loss vs Budget &amp; Forecast: <\/b>This feature showcases how journal entries affect profitability and budgeting. Users can gauge financial health and adjust journal entries accordingly to meet business goals.<\/li>\n<\/ul>\n<h2><b>Conclusion<\/b><\/h2>\n<p>Journal entries are essential records of every financial transaction, ensuring businesses keep accurate, organized books. Each entry documents the transaction date, accounts affected, and the debit and credit amounts.<\/p>\n<p>Managing journal entries manually, however, can be time-consuming and error-prone, making accounting software a valuable tool. <a href=\"https:\/\/www.hashmicro.com\/ph\/accounting-software\">HashMicro Accounting Software<\/a> simplifies this process by automating entries, reconciling bank transactions, and providing real-time reports.<\/p>\n<p>Managing finances has never been easier with HashMicro\u2019s features like auto-reconciliation, multi-level analysis, and financial statements. <i>Walang kahirap-hirap, di ba?<\/i> The software\u2019s intelligent automation makes tracking and updating journal entries simpler and less time-consuming.<\/p>\n<p>Don\u2019t just take our word for it; try out the <a href=\"https:\/\/www.hashmicro.com\/ph\/free-product-tour\/\">free demo<\/a> and contact our expert team!<\/p>\n\n<h2><strong>FAQ About Journal Entry Example<\/strong><\/h2>\n<ul class=\"bottom_faq\">\n<li>\n<details>\n<summary><strong>What is the difference between a journal entry and a ledger entry?<\/strong><\/summary>\n<p>A journal entry is where you first record a financial transaction in detail, while a ledger entry organizes those transactions into specific accounts to help create financial reports.<\/p>\n<\/details>\n<\/li>\n<li>\n<details>\n<summary><strong>How do adjusting entries differ from regular journal entries?<\/strong><\/summary>\n<p>Adjusting entries are made at the end of a reporting period to update account balances for unpaid bills or earned income that has yet to be recorded. Regular journal entries are made whenever transactions happen.<\/p>\n<\/details>\n<\/li>\n<li>\n<details>\n<summary><strong>Why is it important to include a description in a journal entry?<\/strong><\/summary>\n<p>Including a description or narrative in a journal entry provides context for the transaction, aiding in future reference and understanding. It helps accountants and auditors comprehend the nature of the transaction, ensuring transparency and facilitating accurate financial reporting.<\/p>\n<\/details>\n<\/li>\n<li>\n<details>\n<summary><strong>What are compound journal entries?<\/strong><\/summary>\n<p>Compound journal entries involve more than two accounts, with multiple debits and\/or credits in a single entry. They are used when a transaction affects several accounts simultaneously. For example, recording payroll might involve debiting salary expenses and various tax expenses while crediting cash and tax-payable accounts.<\/p>\n<\/details>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Manual journal entries seem simple, but they often lead to a lot of complications. From human errors that makes the debit-credit never reach balance, to misclassified transactions, and hours wasted to check the smallest mistake like a needle in a haystack. If you think that handling and recording assets, liabilites, and inputting them into journal [&hellip;]<\/p>\n","protected":false},"author":49,"featured_media":11748,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[157],"tags":[],"class_list":{"0":"post-11743","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-accounting"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is a Journal Entry in Accounting? 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