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Last reviewed: 2026-06-16

Journal Entries

Purpose

Journal entries record the accounting effects of business activity.

Canonical rules

  • Journal entries record accounting effects.
  • Entries must balance.
  • Posted entries are not silently mutated.
  • Corrections should use reversal or adjustment.
  • Entries should preserve source, date, period, account, amount, and explanation.

User implications

  • Users expect balanced entries for each posting.
  • Corrections should maintain a clear audit trail.

Developer implications

  • Validate entry balance before posting.
  • Prevent in-place mutation of posted records.
  • Preserve source references and explanations.
  • ../contracts/journal-entry.contract.md
  • ../../truth/accounting/posting-and-reversal.md