Firsr of all let us understand what is Journal entry
It is an entry to the journal. It is record to keeps transactions in chronological order.
Liability
Generally liability are accounted when its accrued or arise whichever is arise.Expmple: Suppose on December ,31,2016 company have $ 1000 interest payable on notes then the journal entries for this liability are as follow
| Number | Description | Debit $ | Credit $ |
| Dec-31-2016 | Interest Expanses | 1000 | |
| Interest Payable | 1000 |
Company may have contingent liability. But it will not journalize until it become fixed liability
