An example of an accounting journal entry is performing a debit to cash for $100 and a credit to sales revenue for $100. The increase in an asset is reflected with the debit, while the increase in sales is reflected with the credit.
Another accounting journal entry sample is a debit to inventory for $300 and credit to cash for $300. By purchasing inventory, the inventory account increases with a debit. However, after paying for the goods, the cash has decreased and is adjusted using a credit.
A third sample journal entry contains a debit to consulting expense for $500, credit to cash for $250 and credit to accounts payable for $250. The cost of the consultant is an expense because it is a current period cost. Increases in expenses are reflected through a debit. If the business paid half of the cost now and will pay half later, it will have a cash outflow of $250, which requires a credit to cash. Finally, because the business still owes $250 to the consultant, it increases the liability account named "accounts payable" through a credit to reflect the remaining balance it owes.