What is an accounting entry?

Companies that take themselves their accounts are made to record the accounting entries on their books and, especially, in their newspapers. For best accountancy training Best school of accountancy In Lahore. The accounting entries are the raw material of accounting , they are essential to produce quality financial information, which is why it is necessary to understand what it is. Compta-Facile answers here the question: what is an accounting entry ?

Definition of an accounting entry

The objective of accounting is to produce reliable, comparable, sincere, regular and clear financial information. For this, any flow impacting the company, ie its assets or business, must be recorded in the accounts. This is the very definition of an accounting entry : it reflects the financial impact of a flow in the company 's accounts.

An accounting entry therefore constitutes the financial transcription of a flow in the accounts of an enterprise . Flows can be of any kind: financial flows and / or economic flows, current flows and / or exceptional flows, etc.

All the accounting entries of an enterprise will feed its financial statements which are the balance sheet, the income statement and the appendix.

Characteristics of an accounting entry

An accounting entry consists of at least two lines ; Each line being broken down into several columns and having to contain different information.

Two columns must attract the attention of the input operator: the "debit" column and the "credit" column. Indeed, it will have to burst its operation there according to the nature of the operation and the meaning of it. An accounting entry necessarily includes at least a debit and a credit.

Once the entry has been entered, the total debits must be equal to the total credits . This is the fundamental mechanism of the double part , which is the basis of business accounting. It is then said that the accounting entry is balanced .