What is Accounting Journal Entry
It is the process of Recording Business Transaction Chronologically (Date-Wise) in the Book or Journal of business. There are Different Types / Kinds of Journal Entries used in accounting. In a Journal Entry, one side is called Debit and other side is named as Credit. Both sides are equal in monetary value but shows different Nature of Accounts / Kinds of Accounts . For Example, if Mr. A invested Rs. 700000 into the business. This is a Business Transaction in which two accounts are involved. One account is Cash and other account is Capital. Cash is increasing by Rs. 700000, as it is brought into the business, so it is debited while Capital is also increasing as it is the right of owner that is invested into the business, so it will increase the Cash as a Current Asset ( Rs. 70000) of the business. The following Accounting Journal Entry is passed in The Book / Journal of Business as shown below: