A journal entry is to record a transaction in Journal type.
Journal entry is entered with knowledge of debits and credits assigned to specific accounts using a Chart of Accounts. The total of the debits must equal the total of the credits or the journal entry is said to be “unbalanced.”
QuickBooks is a form-based accounting program. It has specifically designed forms to enter each type of transaction. In QuickBooks, incorrect using of journal entry will mess up all kinds of reports. It is better to avoid write a journal entry unless for recording certain specific transactions which cannot be recorded by other designated forms in QuickBooks.
Perfect example to write a journal entry would be for recording depreciation expense or write off certain prepaid expense in QuickBooks. Certain year-end adjustments by auditors are commonly recorded by way of journal entries in QuickBooks.
Example, how to write a journal entry for depreciation expense of $1,000.
Drepciation expense —> Debit —> $1,000
Accumulation Depreciation —> Credit —-> $1,000
Where is Journal Entry form in new QuickBooks Online?
From the homepage Screen,
- Select Create “+” sign (upper-middle)
- Select “Journal Entry” under heading