In double entry bookkeeping, how is a basic journal entry recorded?

Introduction / Context:
Journal entries are the basic building blocks of financial accounting. Every transaction that affects the accounts of a business is first analysed and then recorded as a journal entry before posting to the ledger. Understanding how a journal entry is structured in double entry bookkeeping is essential for ensuring that the accounting equation remains balanced. Interview questions often test whether candidates can clearly describe the debit and credit principle rather than just memorising examples.

Given Data / Assumptions:

• The system in use is standard double entry bookkeeping.
• A journal entry records at least two accounts, one debited and one credited.
• Total debits in an entry must equal total credits.
• The question is conceptual, not about a specific transaction.

Concept / Approach:
In double entry accounting, every business transaction has equal effects on at least two accounts. One side is recorded as a debit and the other as a credit. The rule is that the total of debit amounts must always equal the total of credit amounts in each journal entry. This rule keeps the accounting equation in balance. Therefore, the correct option must mention debiting one or more accounts, crediting one or more accounts and ensuring that the totals match. Any description that involves only debits, only credits or one column entries contradicts the double entry concept.

Step-by-Step Solution:
Step 1: Recall that a journal entry is the first formal record of a transaction in the accounting system. Step 2: Remember that every journal entry must affect at least two accounts. Step 3: Apply the core rule that total debits must equal total credits for each entry. Step 4: Look for the option that clearly states this rule in words. Step 5: Eliminate options that ignore credits, use a single column or suggest that the system guesses accounts automatically.

Verification / Alternative check:
To check the logic, consider a simple transaction where a business purchases office supplies for cash of 1,000. The journal entry is debit Office Supplies 1,000 and credit Cash 1,000. Total debits equal total credits. For a more complex transaction, such as a sale on credit with sales tax, there may be three lines, for example debit Accounts Receivable, credit Sales and credit Sales Tax Payable, but again the sum of debits equals the sum of credits. This pattern appears in every valid journal entry, confirming that the description given in the correct option is accurate.

Why Other Options Are Wrong:
Option B is wrong because accounting systems do not guess the other side of an entry without clear instructions, and entering only debits would break the double entry rule. Option C is incorrect as single column recording without debit and credit labels belongs to single entry systems, not proper bookkeeping. Option D is wrong because not every transaction involves crediting assets and debiting liabilities; many transactions have the opposite effect. Option E is incorrect because entries must be recorded as transactions occur, not only at year end, to maintain accurate records and audit trails.

Common Pitfalls:
A common mistake is thinking that debit always means increase and credit always means decrease. In reality, debit increases some account types such as assets and expenses, while it decreases others such as liabilities and revenues. Another pitfall is forgetting that multiple debits and credits can appear in a single entry as long as the totals match. Students sometimes focus on numerical examples but struggle to state the general rule, which is exactly what this question asks. Keeping the equality of debits and credits at the centre of understanding helps avoid these errors.

Final Answer:
By debiting one or more accounts and crediting one or more accounts so that total debits equal total credits.