--- title: "What Is a Journal Entry? Definition & Example | MCC" description: "A manual accounting entry with equal debits and credits, used for items software does not create. Plain-English definition with a worked example." url: "https://mcc-solutionsnj.com/bookkeeping/glossary/journal-entry" --- Bookkeeping glossary # What is a journal entry? A manual accounting entry with equal debits and credits, used for items software does not create. By [Matthew Coleman](/about), MCC Solutions [![Intuit ProAdvisor Gold tier badge](/img/credentials/intuit-proadvisor-gold.png)](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77)Gold tier in Intuit's ProAdvisor program. [See my Intuit listing](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77) Keeping your own books? Tallyfinch does invoices, bank import and reports on your computer. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) ## In plain English Use it for accruals, depreciation, corrections and allocations. Always add a memo. Want a second pair of eyes on your books? [A free bookkeeping health check](/bookkeeping/health-check). Check that it falls in an open period. ## Why it matters Most of your books are written by the software as you send invoices and pay bills. Journal entries are the exception, and they carry more risk because nothing checks them except you. A single entry posted to the wrong account or the wrong year can quietly shift profit from one period to another. When an accountant reviews your books, unexplained manual entries are among the first things they question. A clear memo and a supporting document save time and fees. ## Worked example Moving a $300 misposted charge: debit the right account $300, credit the wrong account $300. ## How to handle it - Write down what you are trying to fix or record and which accounts it affects before you open the entry screen. - Enter the debit and credit lines, confirm they total the same, and pick the correct date. - Add a memo that says why the entry exists and attach the source document if there is one. - Run a report for each affected account afterward to confirm the balances moved as expected. - Keep a list of recurring monthly entries, such as depreciation, so none are missed. ## Common mistakes - Using a journal entry to record a customer payment, which leaves the original invoice showing as unpaid. - Posting a correction into a year that has already been filed, which changes the opening balances your accountant relied on. - Leaving the memo blank, so months later nobody can tell whether the entry was intentional. ## Not the same as: General ledger A journal entry is one recorded transaction. The general ledger is the full collection of accounts that every entry, manual or automatic, posts into. [See General ledger](/bookkeeping/glossary/general-ledger). ## Go deeper - [How to Write a Journal Entry Step by Step](/bookkeeping/guides/how-to-write-a-journal-entry): Step-by-step guide to writing a manual journal entry: when to use one, how to choose accounts, write memos, and avoid common posting errors. - [How to Undo Common Mistakes in QuickBooks Online](/bookkeeping/guides/how-to-undo-mistakes-in-quickbooks-online): Fix a wrong deposit, double payment, mis-posted invoice or bad reconciliation in QuickBooks Online without wrecking your records. ## Related terms - [Liability](/bookkeeping/glossary/liability): An amount the business owes to others. - [Materiality](/bookkeeping/glossary/materiality): The size at which an error or omission would change a reader's decisions. - [Invoice](/bookkeeping/glossary/invoice): A bill sent to a customer for goods or services, with the amount due and terms. ## Common questions **What is a journal entry?** A manual accounting entry with equal debits and credits, used for items software does not create. **Can you give an example of journal entry?** Moving a $300 misposted charge: debit the right account $300, credit the wrong account $300. **Can I reverse a journal entry if I made a mistake?** Yes. Most software lets you reverse or void it, or you can post an equal and opposite entry. Reversing is cleaner than editing old entries because it leaves a visible record of the correction. **When should I avoid using a journal entry?** Avoid it for anything that has its own form, such as invoices, bills, customer payments and bank deposits. Using the proper form keeps subledgers like receivables and payables accurate. General information, not tax, legal or accounting advice. Confirm rules with the IRS, the NJ Division of Taxation or a licensed professional. Need help? [### Monthly bookkeeping Categorizing, reconciling and monthly reports, with cleanup, payroll and NJ filings available. Bookkeeping →](/bookkeeping/) [Full glossary](/bookkeeping/glossary) Do it yourself ### Solopreneur Money Toolkit Estimate the tax, compare the offer, keep the calendar and run the business from one organized set of files. 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