What it means
Sales invoices, bills and payments create their own accounting entries. A journal entry is for everything else: depreciation, provisions, expenses that are due but not yet billed, transfers between accounts, opening balances and corrections. Each one must balance: total debits equal total credits.
Example
Two entries Kaveri Agencies passes on 31 Oct 2026:
| Account | Debit | Credit |
|---|---|---|
| Electricity expense | ₹12,500 | |
| Outstanding expenses | ₹12,500 | |
| October bill, received in November | ||
| Depreciation | ₹8,000 | |
| Accumulated depreciation, vehicles | ₹8,000 | |
| Monthly depreciation on the delivery van |
Common mistakes
- Using journals for sales or purchases with GST, so the tax never reaches the GST returns.
- Writing no narration, so nobody knows later why the entry exists.
- Correcting an error by deleting the entry instead of reversing it.
In MyRecords
Journal entries are under Accounting, with the accounts and party on each line, a remark, and Total debit, Total credit and Difference at the top; an entry cannot be submitted until the difference is zero. Journal entry tools add a quick entry between two accounts, templates and opening balances. Cancelling reverses an entry; “Amend” makes a corrected copy, so the audit trail stays complete.