Wednesday, October 14, 2026

The Only Accounting Journal Entry I Need To Remember

I don't have a very good memory, so for most things I like to remember as little as possible and derive everything else from that small bit.  That's what I do with journal entries in accounting.  I actually only remember one journal entry most of the time, and that is when an expense is recorded.  As long as I remember to debit the expense and credit cash, I'm good.  Then I can derive most other journal entry procedures from there pretty much.  

For instance, from there I can remember to record a sale by debiting cash and crediting revenue.  And I can remember to record a receivable by debiting AR and crediting revenue.  And to debit the receiving bank account and credit AR when the customer pays.  And to record a payable by debiting the expense and crediting AP.  And with an asset purchase, I debit the asset and credit cash or credit a payable.  And so on, and so on.

Seems way easier doing things this way than to memorize each particular type of entry individually.  Even if it may take a bit longer to get to the kind of entry I'm looking for at the moment.

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