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Ledger accounting and double-entry bookkeeping

Journal entries

In a bookkeeping system involving the recording of only day to day transactions, it is
inevitable that there will be further year-end entries or adjustments or errors that
need to be corrected out with the normal double-entry system. In order to complete
the system, a journal entry may be required. 'The journal' will be covered in more
detail later in this publication but for the moment it is important to be aware that some
transactions may need to be manually recorded as a journal at the year-end out with
the day to day transactions. Transactions recorded by journal include:

 Depreciation

 The write-off of irrecoverable debts

 Allowances for receivables

 Accruals and prepayments

Each of these entries will be covered later in more detail. A basic journal entry,
however is simply a manual debit and credit entry posted into the system in the same
way as above.

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