The third line is for the description of the income transaction.This entry in the Details column is indented which gives us the idea that it goes on the right-hand side of a ledger (when we get there). In this bookkeeping example, it is $100 to the Sales account. The second line is for the credit entry – the account that the expense is allocated to.In this bookkeeping income example, it is $100 to the Bank. The first line is the for the debit entry – the account that the money came out of to pay for the expense.The one expense journal is split into two ledgers. The one income journal is split into two ledgers. This bookkeeping example is just for one type of income and one type of expense. Some transactions might have more than one credit entry if one payment received covers different types of income. Some transactions might have more than one debit entry if one payment made covers different types of expenses. …all placed one line under the other with no line spaces. When the page is full, turn the page over and carry on. There is always a one-line gap between transactions. Transactions are entered in date order going down the page of a journal book. The source of information for the journal is the document in this example it is the deposit slip and invoice for the income, and the General Store receipt for the expense. Journals show which ledger accounts will be changed by the transaction. Journals are always done first before ledgers. The Cashbook topic is covered further down this page. Journals and ledgers are books used in the double-entry method of bookkeeping. We enter the transactions into the books in the following order: We, the bookkeeper, look at the cash deposit slip and the purchase receipt in the folder.
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