A journal entry is used to record an economic event in a company’s accounting system. Each journal entry consists of at least one debit (an entry made on the left-hand side) and one credit (an entry made on the right-hand side). Debits are listed first, followed by the credits. The credits are indented to emphasize that they are credits, and the total debits must always equal the total credits. Each journal entry is given a date and a reference number to make it easy to look up the journal entry if necessary at a later time.