Post a journal entry
Record loans, owner investment, corrections and anything else with debits and credits, and reverse an entry.
A journal entry records anything that isn't an invoice, a bill or a simple expense: a bank loan, money the owner puts in, a year-end adjustment or a correction. Debits must equal credits.
Steps
-
Open Finance & Accounting and click Journal entry.
Click "Journal entry" -
Set the date and a memo. The memo says what happened, for example "Loan from Meezan Bank received".
-
First line: the debit. Pick the account and type the amount under Debit. Money into the bank is a debit to Bank.
First line: debit -
Second line: the credit. Pick the other account and type the amount under Credit, here the Loans you now owe. Click + Add line for more lines.
Second line: credit -
Check the totals. Debits and credits must be equal before you can post.
-
Click Post entry. The entry gets its number and shows in the Journal and on each account.
Post entry -
Made a mistake? Reverse it. Posted entries can't be edited. Click Reverse to post the opposite entry, then post the right one.
Mistake? Reverse it
Tip Not sure which side? Debit what the business receives or spends on; credit where it came from.
Good to know
- Entries on tax accounts can't be dated in a period whose tax return is filed. See Pay your tax and the lock date.