Journal Entries:  Journal Entires can be done for Bank Deposit corrections, Escript deposits or to transfer monies between ledger accounts.

 

Fundamentals of a Debit and Credit:

 

1.When dealing with Bank accounts (Checking, Savings): a debit increases the account; a credit decreases the account

2.When dealing with Revenue accounts: a debit decreases the account; a credit increases the account

3.When dealing with Expense accounts: a debit increases the account; a credit decreases the account

4.When dealing with Trust accounts: a debit decreases the account; a credit increases the account

 

Note: Journal Entries affecting cash will show up on the bank reconciliation

 

How to Create a Journal Entry:

 

 

1.Date defaults to today’s date, you may change if needed.

2.Journal entry number defaults in sequential order.

3.Enter a line item for debit and a line item for credit 

4.Click “save”, debits and credits must match in order to save.

 

Journal Entry Cheat Sheet

 

NOTE: Keep in mind that you will want to review your account types before creating a journal entry.

•The concept of debits and credits used in general ledger accounting are not the same as the debits and credits that banks use on your physical bank accounts. 

•A debit to your checking account on the general ledger will result in increasing the ledger account.  This shouldn’t be confused with the terminology used by your bank which is not concerned with accounting terms and rules. 

•A debit posted to your actual bank statement will result in decreasing the amount of cash truly in the bank. 

•The same concepts hold true for credits (in reverse fashion) as they relate to the general ledger and your actual bank statement.

 

Reverse Journal Entry

 You may reverse a journal entry made if needed. This will reverse the necessary revenue accordingly.

1.Locate the journal you need to reverse.

2.Make sure the date is correct.

3.Click the “reverse” button.

 

Tip: You can also find journal entries on this screen for viewing purposes only.

 

 

 

 

 

 

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