Accounting transactions can get entered incorrectly into an accounting system, or maybe a transaction should have been split into two different general ledger accounts.
Either way, when this happens you must make changes to your original transaction after it's been recorded, and you can do this easily in QuickBooks accounting software by making a journal entry.
You can make journal entries in QuickBooks to adjust or correct transactions and post entries that cannot be performed in other ways, such as adjustments to profit or loss. The journal entry process is simple.
A general journal entry is an accounting transaction that is entered, or posted, directly to the general ledger. A company's general ledger acts as its main group of accounts used to record balance sheet and income statement transactions.
Typical journal entries for QuickBooks include booking depreciation entries, income tax provisions, and loan interest adjustments. If a journal entry is in fact needed, consider the following rules:
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Repeat Steps 4 through 6 until the entries completely offset each other and the transaction reaches a zero balance. Your total in the Debit column should equal the total in the Credit column, and the journal entry will then be properly balanced.
Click Save & Close to save the journal entry and close the window or click Save & New to save the journal entry and open a new window.
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Author: Beverly Lang, Diversified Business Solutions.