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  1. Understanding Journal Entries In Accounting

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    Understanding journal entries in accounting involves the following key points:
    • A journal entry is the written record of a business transaction in a double-entry accounting system.
    • Each entry contains an equal debit and credit, along with the names of the accounts, description of the transaction, and date of the business event.
    • Journal entries track a business's transactions, documenting who the transaction was with, the money and products/services exchanged, and other relevant information.
    • They record how a transaction impacts accounts and balances.
    • Properly documented journal entries include the correct date, debited and credited amounts, description of the transaction, and a unique reference number.
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