A journal entry to record the purchase of a business is an accounting tool used to enter the detailed financial information about the purchase into a company’s formal ledger. This type of entry records significant items, such as the purchase price, the acquisition costs, additional liabilities, and associated assets acquired in the transaction. It also documents any related expenses incurred while finalizing the deal, such as legal or advisory fees, as well as any down payments made. By providing an accurate and up-to-date record of these types of transactions, businesses can ensure they remain financially managed and compliant with all applicable laws.