Journal Entry

The entry in an accounting system central to the validity of it and the ultimate production of an accurate balance sheet is called a 'journal entry'. This will normally be backed up by a 'paper' item such as an invoice or receipt.

In the most common form of accounting, being 'double entry bookkeeping', the entry will actually form a minimum of two entries into the system, one being a 'debit' and the other being a 'credit'. This is a simple entry, whereas there can be compound entries that involve several credit and debits, such as in payroll transactions, however, for each debit there will always be an equal and opposite credit.