Technical definition
A dated record that identifies the accounts and debit-credit effects of a transaction.
How it works
A complete entry states the date, accounts, amounts and often a short explanation or document reference. Simple entries affect two accounts; compound entries affect more, but total debits and credits still agree.
Everyday example
Services delivered on account for $900: debit Accounts Receivable 900; credit Service Revenue 900.
Common pitfall
Choosing balancing amounts is not enough; the accounts and reporting period must also be correct.