What is a double entry journal?

A double entry journal is a form of accounting record-keeping that follows the principle of double entry accounting. This system requires that each financial transaction be recorded in at least two different accounts, with one account being debited and the other being credited.

The double entry journal helps ensure accuracy and consistency in financial records by providing a clear and complete picture of each transaction. It also helps to facilitate the preparation of financial statements and analysis of a company's financial performance.

In a double entry journal, each transaction is recorded using two columns - one for debits and one for credits. The debit column represents the amounts that are owed or expenses incurred, while the credit column represents the amounts that are received or revenues earned.

Overall, the double entry journal is a fundamental tool in accounting that provides a systematic and structured way to record financial transactions and maintain accurate financial records.