Example : A Bonus to Declan of 10% on total sales above $200,000.
Question - Record Declan's bonus on total sales of $240,000.
31/03/08 Bonus - Declan 4000Dr
Current Account - Declan 4000Cr
debit bonus expensecredit unpaid bonus payable
Journal entry is the basic transaction to record the business transaction and without journal entry no record can be maintained.
A journal records what you're findings are
You record he credit entry for transaction (a) 5/1 in the journal as
Debit bonusCredit cash / bank
Journal entry is required to record business transaction in books of accounts and without journal entry no business transaction can be recorded in books.
if journal entry is misclassified to some other account then it is required to re-classify the journal entry for correct impact or record purposes.
It is termed as Journal entry.
The General Journal
Debit bonusCredit cash / bank
If a company gives a director a loam of 15000 you will record it on the debit section of the general journal entry.
The accounting journal entry to record the purchase price of a business is debit. The debit will decrease the assets reflecting the purchase price.