At the behest of the accounting, journal, It's that one accounting book in which all are recorded each day the economic events of a company, that is, all the transactions carried out, and always following a chronological order.
Meanwhile, each event will involve an annotation that is formally designated as accounting entry or accounting entry. This entry will always imply a modification regarding the assets of a company and as a result will imply a specific movement in its accounts.
On the call double entry system which is the type of record most used for this book, each entry will be composed of two annotations, on the one hand the debit and on the other the credit. It should be noted that both carry out opposite movements and therefore will affect liabilities or assets.
However, following this system it is impossible to write down something in the debit and not the credit, the variations that one or the other generates in its counterpart must always be recorded in order to guarantee the accounting balance of the company in question.
The debit and credit of a seat with different amounts can never be left. Always in an entry the amounts recorded in debit and the amounts recorded in credit must be equal.
Because if they are not properly recorded, they would be generating disruptions that obviously will then cause them not to give the accounts correctly.
With an example we will see it more clearly, if a good is bought, the debit account will intervene, instead of the debit for the purchase of that good and also the payment account to the credit, because an obligation to pay the well it was bought.
Frequent economic events reported in this book include: a purchase, payment, collection, sale, provision, income or expense, among others.
It should be noted that the accounting of a company will allow its own and others to know for sure the solvency and economic capacity that it has. That is why it is vitally important that each financial and economic step be consigned accordingly.
