WHEN I use Journal Entry
Thanks for this lecture.
When I need to use Journal Entry.
Because sometimes as company we get loan and then repay back to the pre-finance individual or company, so and we use as Journal entry like making payable account. please give me explanation on journal use
That is a great question. A journal entry is generally used to record transactions such as depreciation, amortization or adjustments to income/expense accounts in order to close the books properly. A good rule of thumb for when to record a journal entry is if no other transaction (invoice, bill, credit card payment) can be used then a journal entry may be appropriate. Below are a couple of great resources where you can find additional info regarding journal entries:
All the Best-