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Blind Entry

Blind Entry

What Is a Blind Entry?

A blind entry is an accounting entry found in financial bookkeeping that contains no extra information about its purpose or source. Blind passages truly do contain the vital essential information required to keep accounting records right and exceptional, as they determine the currency value of the entry and whether it is a debit or a credit.

Nonetheless, since they incorporate no extra information in regards to the justification for the transaction, they are frequently discouraged as they can be utilized to make fraudulent transactions that control the presence of the books.

Grasping Blind Entries

A blind entry is a journal entry that is made without giving any informative description of the transaction that hastened the entry. In accounting, blind passages might incorporate developments of money or journal sections from one area of an organization's books to another, however which are made with no listed explanation or defense.

Twofold entry bookkeeping is the most common form of accounting. It straightforwardly influences how journals are kept and journal sections are recorded. Each business transaction is comprised of an exchange between two accounts. This means that every journal entry is recorded with two sections. For instance, if a business owner purchases $1,000 worth of inventory with cash, the bookkeeper records two transactions in a journal entry. The cash account diminishes by $1,000, and the inventory account, which is a current asset, increments by $1,000.

Special Considerations

While the utilization of blind passages is normally discouraged on the grounds that the lack of information can lead to deficient records, blind sections can be proper in certain circumstances. A blind entry might be fitting when a business sells just a single product or service, so there isn't a lot of commonsense need to separate approaching sales between different customers. Be that as it may, on the off chance that utilized in some other setting, blind passages ought to be researched further.

Illustration of a Blind Entry

Say that Bert and Ernie run Gordon's Bank and Trust. In the bank's books, they incorporate different accounts to keep track of the revenue streams for the sales of different products and lines of business. All journal passages made between accounts are to be completely upheld with documentation expressing the justification for the transfer so the books can be properly inspected consistently.

At some point, Ernie makes a transfer from the "security and annuity sales" line of business into the "loaning" line of business and doesn't list a supporting justification for the fund transfer. This journal entry without a listed justification behind the transfer is a blind entry.


  • On account of their mistiness, blind sections are discouraged and may even excite doubt of fraud.
  • A blind entry is an accounting thing that doesn't contain extra information concerning its source or purpose.
  • While blind sections truly do contain fundamental data, for example, price and date to balance books, the entry isn't justified in any capacity.