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What is the difference between an entry and a journal entry?
What is the difference between an entry and a journal entry?
Marco Fiumara avatar
Written by Marco Fiumara
Updated over a week ago

In Cimplico Workpapers, entries and journal entries serve different purposes.

Journal Entries

A journal entry changes the balance of an account. This works just like a journal entry in your ledger software (e.g., Xero or MYOB), allowing you to:

  • Adjust account balances.

  • Correct errors in the trial balance.

  • Reflect accounting entries, such as accruals or prepayments.

Entries in a Default Worksheet

An entry in a default worksheet does not change the account balance. Instead, it is used to break down and document an existing balance from the ledger.

For example:

  • If the Interest Expense account has a balance of $3,600, you might create entries to show:

    • $3,500 of loan interest (with the loan statement attached).

    • $99 of ATO interest (with ATO reports attached).

    • $1 for rounding.

This process helps evidence and verify what makes up the balance in the account, but it does not adjust the balance itself.

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