Creating Journal Entries
Topic Overview
One of the most common journal entries that need to be entered each day is the bank deposit. The bank deposit Journal Entry credits the cash clearing account and debit the bank or banks.
Other types of journal entries include:
- start up values, including the initial balance sheet
- clearing out the Paid Out Clearing Account for purchases made by the sales staff using a type P type invoice
- one-time checks to suppliers that you are unlikely to deal with again e.g. a donation to the high school for advertising in the yearbook. It is not necessary to create a supplier, post the bill, and pay the bill when instead you could enter it as a single journal entry.
- bank service charges at the end of the month
- payroll checks. If you are using certain payroll programs, the journal entries are automatically created for you in our import routine, but you still have to ensure that they are posted.
- year end accounting adjustments, such as depreciation
To create a journal entry see How to Create a Journal Entry.