Understanding the fundamental rules of debit and credit in double-entry bookkeeping is essential for accurate financial accounting.
A journal entry is the act of recording a transaction in an accounting journal, such as the general journal. It ensures that financial transactions are accurately captured and balanced, reflecting the debits and credits involved.
A trial balance is a bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns. This process helps ensure the accuracy of the company’s financial records and is a critical step in the accounting cycle.
