Debit and Credit Journal Entry is a type of record kept by companies to track the movement of financial funds. It’s a system that allows for the accurate tracking of all income, expenses, assets, liabilities, and equity within any business entity. With creative approaches, this system can also be used for decision-making purposes.
Debit journal entries are where funds are taken out of your accounts and credit journal entries are where funds are added to your accounts. Through this dual process, any changes in financial status can be monitored in real time as they occur. With debit and credit journal entries, businesses have an easier time keeping records and monitoring spending patterns.