Browse Journal Entries and Closing

Journal Entries and Closing

Pages covering original entries, accrual basis accounting, adjustments, and end-of-period closing work.

Journal entry and closing pages explain how accounting moves from transaction capture to period-end cleanup. This section covers the mechanics behind original entries, accrual basis accounting, adjusting entries, and closing entries.

Use this section when the main question is about timing, matching, period cutoffs, or how temporary accounts get reset between reporting periods.

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In this section

  • Accrual
    Period-end recognition of revenue earned or expense incurred before the related cash movement or final invoice.
  • Accrual Basis Accounting
    Accounting method that recognizes revenue when earned and expenses when incurred rather than when cash changes hands.
  • Adjusting Entry
    Period-end journal entry used to align revenues, expenses, assets, and liabilities with the correct reporting period.
  • Closing Entry
    End-of-period entry that transfers temporary-account balances and resets revenue and expense accounts for the next period.
  • General Journal
    Chronological accounting journal used for entries that are not captured cleanly by a specialized journal or subsystem.
  • Journal Entry
    Record of an accounting transaction showing the accounts affected and the debits and credits used to capture it.
  • Purchase Journal
    Special journal, also called a purchase day book, used to record credit purchase invoices before posting to payables and expense or inventory accounts.
  • Sales Journal
    Special journal, also called a sales day book, used to record credit sales invoices before posting to receivables and revenue accounts.
  • Special Journal
    Accounting journal used to capture one recurring transaction type before posting totals or details to the ledger.