Gray Step Software Support

Journal Entry Cheat Sheet

NOTE: Keep in mind that you will want to review your account types before creating a journal entry.

•The concept of debits and credits used in general ledger accounting are not the same as the debits and credits that banks use on your physical bank accounts. 

•A debit to your checking account on the general ledger will result in increasing the ledger account.  This shouldn’t be confused with the terminology used by your bank which is not concerned with accounting terms and rules. 

•A debit posted to your actual bank statement will result in decreasing the amount of cash truly in the bank. 

•The same concepts hold true for credits (in reverse fashion) as they relate to the general ledger and your actual bank statement.