Accounting seat

An accounting entry represents an entry with the objective of reflecting an accounting operation carried out by the company.

The total of accounting entries form the accounting journal and reflect all the operations carried out by a company throughout a period. That is, through the accounting entry an accounting operation or event is reflected in the accounting. If the accounting entry did not exist, there would be no way to reflect the operations in the accounting.

Usefulness and use of accounting entries

We have to follow the following itinerary:

1. First, the company performs an operation or an accounting event occurs.
2. This accounting fact must be recorded in the accounting. To make this record, we make an accounting entry.
3. Once the accounting entry has been made, the operation or accounting event appears reflected in the accounting.

Ultimately, the main utility of accounting entries is the reflection in your accounting of the daily operations carried out by a company. Without this reflection in the accounting by the accounting entries, the operations would not be reflected in the company's financial statements. This shows that the accounting entries are the basis of accounting.

Graphic format of the accounting entry: double-entry accounting

In double-entry accounting, the accounting entries have a very characteristic graphic representation:

1. Should: The debit records increases in assets and expense items and decreases in liabilities, equity and income items. In the accounting entry it is necessary to indicate the accounting account and the name and to the left the amount. Multiple beads can be placed on each seat.
2. To have: To the credit, increases in liability, equity and income items and decreases in assets and expense items are recorded. In the accounting entry it is necessary to indicate the accounting account and the name and the amount to the right. Multiple beads can be placed on each seat.
3. Date: the date of registration of the accounting operation is indicated.

The accounting entry always has to be square. That is, the total amount indicated on the debit must be the same as the credit.

Below you can see a real example of an accounting entry: