Journal entries are the processes in which financial transactions are recorded in the accounting books using the double-entry system to ensure the books remain balanced. Double-entry principle Each transaction is recorded in one debit account and one credit account for the same amount; total debits always equal total credits, ensuring accounting balance. Types of entries • Daily entries: Recording daily transactions (sales, purchases, salaries) • Ledger entries: Posting entries to analyze accounts in detail • Adjusting entries: End-of-period adjustments to correct accounts and ensure accuracy Components of a journal entry • Date / description / amounts / affected accounts

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