These practices are used to make the journal entry easier to read, and reduce errors in posting.4) Refer to the information given, check the Chart of Accounts, tighten your thinking bolts and select the correct account for the second part.The day indicates the beginning of a new journal entry.
This is a sale, so we will use Sales Revenue for the Credit side of the journal entry. The textbook will show that a memorandum can be entered on the line below the journal entry. Note that it is customary to enter the debit part first, and the credit entry second.
This should be additional information that is not contained in the journal entry itself; information that will be useful when trying to reconstruct events at a later date. The credit entry account title is indented, to help set it off from the debit account titles.
In this example I have totaled the columns to show that the journal entry is in balance.
In real accounting systems a total is only drawn at the bottom of the page, not after each journal entry.
You know what you want, and you don’t have to hide it.