# Journal entry

> A journal entry records a transaction in the books as debits and credits of equal amount. In practice a journal voucher is used for entries that involve no cash or bank movement, such as provisions, depreciation, adjustments between ledgers and corrections.

In EaseDesk: In EaseDesk, invoices, receipts, bills and payments post their own entries. For the rest, open Accounting → Vouchers → New voucher and choose Journal. It is posted only when debits equal credits, and gets a number in its own series.

## Why it matters to your business

Most of your books write themselves from invoices and payments. Journal entries are the exceptions,
and they are where judgement comes in: how much to provide for an unpaid expense, when to write
off a customer who will not pay. A few wrong journals can change your profit more than a hundred
invoices, so they deserve a narration and a second look.

## How it works

A journal entry names the ledgers, the amount on each side and the reason. For rent of ₹30,000 for
March that will be paid in April:

| Ledger | Debit | Credit |
|---|---|---|
| Rent | ₹30,000 | |
| Rent payable | | ₹30,000 |

The expense is counted in March, where it belongs, and the amount owed shows as a liability. When
the rent is paid in April, a payment entry clears Rent payable.

## Common mistakes

- Using a journal for a bank or cash movement, which then never matches the bank statement.
- Entries without a narration.
- Passing a journal straight to a customer's or vendor's ledger without linking it to the bill it
  settles.

## Questions

### When do I need a journal voucher?

When no money moves. Typical cases are a provision for an expense due but not billed, depreciation, writing off a bad debt, moving an amount posted to the wrong ledger, and year-end adjustments your CA advises.

### What is the rule for debit and credit?

Debit what comes in, expenses and losses; credit what goes out, incomes and gains. For a person or business, debit the receiver and credit the giver. Every entry has equal debits and credits.

### What is a narration?

A short note on the entry that says why it was made. A good narration lets someone understand the entry a year later without asking you.

### Can a journal entry be changed after it is posted?

It should be corrected, not erased. Good software keeps the original in the audit trail and posts the change, so there is a record of who changed what.

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Source: https://www.easedesk.com/glossary/journal-entry · Updated 2026-10-02 · EaseDesk