An entry in accounting refers to the act of recording a financial transaction in the books of accounts. It shows what happened in the transaction—which accounts are affected, how much is involved, and why the transaction occurred.
The entry is usually recorded in a journal (also called the book of original entry), and it follows the double-entry system — where every transaction has two sides: one debit and one credit.
🔑 Key Parts of an Accounting Entry:
- Date of the transaction
- Accounts involved (which account to debit and which to credit)
- Amount (equal in debit and credit)
- A narration (short explanation of the transaction)
What is Entry Mode in Accounting?
Entry Mode refers to the method or way in which accounting entries are recorded, especially in modern software or computerized accounting systems.
Common Entry Modes:
- Single Entry Mode – Record one transaction at a time (e.g., Sales, Purchase, Payment).
- Double Entry Mode – Record both debit and credit sides of a transaction manually.
- Voucher Entry Mode – Record entries using pre-defined voucher types like:
- Payment Voucher
- Receipt Voucher
- Journal Voucher
- Sales Voucher
- Purchase Voucher
Both Single Entry and Double Entry bookkeeping systems serve the purpose of recording financial transactions, but the latter is more comprehensive and accurate. While Single Entry is easier to maintain and suitable for small businesses, Double Entry provides a complete and balanced record of financial activities.