![]() ![]() ![]() How Do You Record a Journal Entry for an Expense? That said, the debit is just one-half of the accounting entry. This debit shows that your expense account has increased-or the transaction has increased your total costs. Is an Expense a Debit or Credit in a Journal Entry?Īn expense is considered a debit in a journal entry. In other words, each accounting record includes a debit and a credit, and the amount of debit and credit should be equal for each record. In business, you record all transactions (including expenses) using a double-entry accounting system. Journal entries for expenses are records you keep in your general ledger or accounting software that track information about your business expenses, like the date they were incurred and how much they cost.īusiness expenses can include a range of things, like rent, payroll, and inventory. Here's how to make your bookkeeping entries for expenses and common examples you may come across. But understanding how much you spend is just as important as knowing how much money you make.īy maintaining records of your expenses, you can better understand the cost of running your business and calculate your profits. Keeping track of the money that leaves your business may not be as fun as counting the revenue you bring in through sales. ![]()
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