In accounting, the basic principle is the same: An adjusting journal entry to account for the accruing interest on a bank loan will debit the Interest Expense account and credit the Accrued Interest Payable account.
How to write a journal entry
A Journal Entry is just a abstract of the debits and credit of the transaction entry to the Journal. Journal entries are necessary as a result of they permit us to kind our transactions into manageable knowledge.
You’ll discover the above diagram exhibits step one as “Supply Paperwork”. Supply paperwork are issues reminiscent of receipts, invoices, financial institution statements and bank card statements which are collected throughout the 12 months in order that we’ve all the data we want when the time comes for us do our accounting/bookkeeping. Clearly, on this tutorial, we gained’t be asking you to exit and acquire invoices and receipts, so we’ll conveniently “skip” that step for now.
The whole lot we do from this level on might be stuff that actual accountants and bookkeepers are doing of their places of work at this very second. Which means this lesson might be a little extra technical than the earlier ones. Don’t let that spook you although. You’ll be stunned at how easy it may be! Now could be a good time for us to lay out the steps within the accounting/bookkeeping course of:
Think about having a giant stack of receipts and invoices from totally different outlets, suppliers, and prospects. All the data you want is there, nevertheless it’s ineffective when it’s all tousled like that! Journal entries assist us kind all this into significant info.
Each single transaction consists of two actions: a debit motion and a credit score motion. Watch out not to confuse this with the debit and credit score sides. These are two various things.
Debit and credit score actions are utilized in accounting to present will increase or decreases in our accounts. Subsequently as a substitute of claiming there was a rise or a lower in an account, we are saying there was a debit motion or a credit score motion.
| DEBIT SIDE (Belongings, Bills, Drawings) | CREDIT SIDE (Liabilities, Income, Proprietor’s Fairness) | |
| Enhance | Debit motion | Credit score motion |
| Lower | Credit score motion | Debit motion |
| DEBIT SIDE (Belongings, Bills, Drawings) | CREDIT SIDE (Liabilities, Income, Proprietor’s Fairness) | |
| Enhance | Debit motion | Credit score motion |
| Lower | Credit score motion | Debit motion |
| DEBIT SIDE (Belongings, Bills, Drawings) | CREDIT SIDE (Liabilities, Income, Proprietor’s Fairness) | |
| Enhance | Debit motion | Credit score motion |
| Lower | Credit score motion | Debit motion |
Do you want a place to categorical your self? Would you like to categorical your self on totally different matters? Writing totally different journal entries will help you set your varied ideas into phrases. You resolve the size and matter of your writing. Let your emotions fly onto totally different pages. The beauty of journal entries is that they give you a clean canvas every time you resolve to write. No want to choose up the place you left off, until you need to.
10 Tips When Writing a Journal
1. Set a schedule
As we mentioned earlier in the article, setting a schedule is a great first step. Decide how many times you want to write and set a schedule. Whether it be once a day, or once a week, decide on a time you want to write and don’t skip it.
2. Keep it private
A journal is personal and should be a place you feel comfortable expressing yourself honestly and truthfully. Penzu keeps your journal safe and secure, with all your entries made private by default, only made available to share under your command.
3. Meditate
Any journal entry will benefit from some moments of reflection before you begin writing. Before you start writing, go to a quiet place and focus on your breath for a few minutes. This is a wonderful exercise to clear your head and settle your thoughts.
4.Brainstorm
If you want your journal to be about something specific, brainstorm ideas to write about. You can write a bible journal, a dream journal, cooking, work, school, anything you want! Feel free to start writing down ideas of what you are interested in or feel you should be writing about. This is the perfect place to get your creative juices flowing. Check out this page for a list of all the different types of journals.
5.Date your entry
It is important to keep each journal entry dated, so you know when you wrote it. You will want to go back through your journal at some point and see when the entries of the topic you’re writing about were added. Also, it will be nice to see how you were feeling at different points in your life. Penzu automatically dates your entries for you, so you don’t have to worry about remembering to do it.
6.Title your entry
If you can, try and title your entries. This will help you navigate your journal and keep your writings focused. You don’t need to title it before you start writing though. A great way to think of a title is after you’ve written, but it is something to keep in mind.
7.Write naturally
8.Write quickly
Don’t let writer’s block get in your way. Just keep writing whatever comes to mind. It is always hard to stop and start again, so keeping writing. It doesn’t have to make sense. Don’t think too much about the words you are putting on the page. You can make sense of them later.
9.Write honestly
Your journal is for your eyes only, so be honest. You don’t want to lie to yourself. Be real with your thoughts, feelings and opinions. Be as candid as you can. You want your journal to be an honest representation of yourself and the times you’re writing in.
10. Have fun
Writing a journal should be an enjoyable experience. Have fun with your writing and take pleasure in it. Writing in your journal shouldn’t be a chore. It should be something you look forward to doing, so make it a fun exercise.
8 Extra Tips For New Journal Writers
Writing a journal entry is different for everyone. We all write differently and about different things, so it is a different experience for everyone. We can help with pointing you in the right direction, whatever that direction may be. Here are some tips to get you started:
1. Think about what you want to write.
2. Try writing with a journaling prompt
3. Plan ahead
4. Practice
5. Write letters
There are certainly times in your life where you wish you said something, or wish you didn’t say something. Write about these moments. Think about writing letters that you will never send. They can be addressed to specific people or not, but they are great outlets for honest thoughts and make for compelling entries.
6. Try different perspectives
A helpful method of writing is to write from different perspectives. Pick a topic or event to write about and try writing in from someone else’s perspective, like a parent’s, a friend’s, or even an animal’s. It is healthy to think about things from different points of view.
7. Add pictures
Pictures say a thousand words and can certainly inspire more. With Penzu you can import photos right into your entries, so feel free to add them throughout or just at the beginning to give you inspiration. You can talk about what is happening in the picture, the person that took it, what isn’t pictured, or just what it means to you. Think of it as giving the picture a long caption.
8. Free write
Free writing is without direction, structure or motive. This means just take yourself to the page and go wild. Whenever an idea pops into your head, just write it down. It doesn’t have to be cohesive or have a purpose.
Key Takeaways
The purpose of a journal entry is to physically or digitally record every business transaction properly and accurately. If a transaction affects multiple accounts, the journal entry will detail that information as well.
Journal entries are the foundation of effective record-keeping. They are sorted into various charts of accounts and, once verified for accuracy, posted to the general ledger, which then feeds information to the financial reports that business decision-makers depend on.
Accurate and complete journals are also essential in the auditing process, as journal entries provide detailed accounts of every transaction. Auditors, both internal and external, will look for entries or adjustments that lack the proper documentation, explanations or approvals or that are outside the norm for the business.
References:
https://biyoterapi.com/life/how-to-write-a-journal-entry/
https://penzu.com/how-to-start-and-write-a-journal
https://blog.udemy.com/journal-entry-examples/
https://www.netsuite.com/portal/resource/articles/accounting/journal-entry.shtml