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In manual accounting process, a journal entry is a logging of transactions into accounting journal items. A journal entry can include many recordings, each of that is either a debit or credit. Total of debits should be equal to the total of the credits. Otherwise, a journal entry can be classified as unbalanced. In modern times, many accounting software will automatically record many of the business transactions in the general ledger as soon as the accounting software prepares the sales invoices, issues checks to creditors, processes receipts from clients, etc. Then, a business company will not see journal entries for most of the business transactions.However, a company will need to process some journal entries to record transfers between bank accounts and to record adjusting entries.
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