correct for double entry

Answer

Hi there, cpkoh.

Allow me to walk you through the steps on how to create a correct double entry.

In traditional accounting, a journal entry is a transaction that has at least two parts - a debit and a credit. As a rule, the total of the Debit column is always equal to the total of the Credit column.

Please see below steps to create a journal entry:

  1. Select the Plus icon (+) at the top, then Journal Entry.
  2. In the Journal date field, enter the transaction date.
  3. (Optional) Enter a Journal no. to help you identify the transaction in the reports.
  4. Enter the first distribution line.
    • Accounts: Any account in the Chart of Accounts.
    • Debits or Credits: Often the first line is Debits. After you save the transaction, find it in the Recent transactions report to see if Debit had the desired effect.
    • Description (Optional): The description you enter appears on reports showing transaction details.
    • Name: Choose a customer, vendor/supplier, or employee associated with the line, if any.
  • Continue to enter distribution lines until the sum of the Debit column entries equals the sum of the Credit column entries.
  • (Optional) Select Make recurring to set a recurring journal entry schedule.
  • Save the transaction.
  • Note: If you are not sure which account receives the debit and the credit side of a transaction, consult your accounting professional for guidance. 

    Feel free to comment below if you have any more questions. Have an awesome day!
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