In a standard journal entry, where is the account title typically entered?

• A. On the right side of the journal entry, with credits listed first and debits indented below
• B. On the left side of the journal entry, with debits listed first and credits indented below
• C. In the explanation section at the bottom of the journal entry
• D. Centered at the top of the journal entry, above the date

Answer: (B)

Verified step by step guidance

1. Understand the structure of a standard journal entry: A journal entry records financial transactions in the accounting system, typically including the date, account titles, debit amounts, and credit amounts.
2. Recognize the placement of account titles: In a standard journal entry, account titles are entered on the left side of the journal entry. This is a convention used to clearly identify the accounts involved in the transaction.
3. Identify the order of debits and credits: Debits are listed first, aligned to the left margin, while credits are indented below the debits. This formatting helps distinguish between the two types of entries.
4. Note the purpose of indentation: Indenting credits below debits visually separates the two and ensures clarity in the journal entry format.
5. Understand the importance of proper formatting: Properly formatted journal entries are essential for accurate financial reporting and ease of understanding by accountants and auditors.