Glossary
Journal Entry
A single record in the general ledger, posting equal debits and credits across accounts to capture one transaction.
Every journal entry balances: the debits equal the credits. That constraint is what makes double-entry bookkeeping self-checking, and it is why an unbalanced entry is rejected rather than merely flagged.
In agency accounting, commission recognition, premium receipt, and carrier remittance each generate entries touching trust and operating accounts. Getting the account mapping right at this level is what makes the resulting financial statements meaningful.
See also
- General Ledger — The central accounting record holding every financial transaction of a business, organised by account.
- Bank Reconciliation — Matching an account's ledger balance to its bank statement, explaining every difference between the two.
- Commission Reconciliation — The process of verifying that the commission a carrier actually paid matches what the agency was contractually owed, lin…