How to build a balanced journal entry
Build both sides of the story.
Try the interactive lessonLet’s make it simple.
A journal entry translates a transaction into accounts. Choose what changes, place each account on its debit or credit side, and record equal amounts.
Picture this.
A $500 laptop paid for in cash increases Equipment and decreases Cash. Debit Equipment $500. Credit Cash $500. Both are assets; the direction of the change decides the side.
Check your understanding
What account do you credit when you pay with business cash?
Think it through, then reveal the explanation
Credit Cash to record a decrease in that asset.
Build the bigger picture.
- Identify the transaction
- Choose the accounts
- Record both sides
- Confirm equal totals
A balanced entry still needs the correct accounts.
Now make it move.
Bring this idea to life with interactive practice, a 3D illustration and tips along the way. Your progress stays on your device.
Practice The Journal Lab