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What do you mean by a journal entry?
Journal entry is that part of accounting which keeps a track of the entire credited and debited amount in a financial system of a firm. Journal entries also take into account items like depreciation and bond amortization and use software which accounts all these entries in a separate module.
Journal entries include following data:
1. Entry number.
2. Batch number.
3. Recurring or nonrecurring.
4. Total money.
5. Name.
6. Date.
7. Period of accounting.
8. Proper description.
There are generally five main types of entries such as opening, closing, rectification, transfer, and adjustment entries. But opening and closing entries are the most important onefrom among all of them.
Opening entries-
All the assets and liabilities of the previous year that are transferred in the journal entry of present year are called opening entry.
Closing entries-
Consists of items shown in the credit and debit side of trading account, transfers gross profit or gross loss to profit and loss accounts, etc.
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