---
title: "Journal Entries"
space: "Books"
url: "https://docs.frappe.io/books/journal-entries"
updated: "2026-01-30"
---

Journal Entries are transactional entries used to record transactions that don’t strictly identify as a Sale or Purchase. Such as the transfer of funds from a Bank Account to a Cash Account.

Creating Journal Entries
------------------------

To create a Journal Entry first navigate to the Journal Entry page

`Common > Journal Entry`

Then click on the blue `+` button to open a new Journal Entry form.

[![Journal Entry Form](https://github.com/frappe/books_docs/raw/master/docs/transactions/images/journal-entry.png)](https://github.com/frappe/books_docs/blob/master/docs/transactions/images/journal-entry.png)  


1. Set the type of Journal Entry.
2. Add rows for each Account and set the amounts being credited and debited.
3. Click on Save and then Submit.

::: info Double Entry Bookkeeping When making a Journal Entry, you must ensure that the total amount in the Debit column should equal the total amount in the Credit column. :::

After clicking Submit, Frappe Books will the make ledger entries and update the account balances.

You can check the entries by clicking Ledger Entries under the `...` menu.

Examples
--------

These are two examples of how you can make direct Journal Entries to account for transactions that are different from Sales or Purchases.

### Recording Expenses

When you have expenses that you pay at the time of purchase, you can record an Expense directly using Journal Entry.

To do so add two rows to a new Journal Entry form, one for Debit and one for Credit.

Let’s say you incur an expense of ₹5,000 for traveling to a client site, and you paid it directly from your Bank Account, then you must add the following rows:



| Account | Debit | Credit |
| --- | --- | --- |
| Bank Account |  | ₹5,000 |
| Travel Expenses | ₹5,000 |  |

### Recording Prepayments

When a customer pays for a product or service that you haven’t delivered yet, it cannot be booked as Income yet. This is a Liability for your business to fulfill later.

To make an entry that reflects this, add two rows to a new Journal Entry form.

1. One which Debits the amount into the Bank Account because you have received the payment.
2. Another which Credits the amount into a Liability account you may create known as Prepayments.



| Account | Debit | Credit |
| --- | --- | --- |
| Bank Account | ₹5,000 |  |
| Prepayment |  | ₹5,000 |