Learning Objective 5

Record transactions in the general journal.

The General Journal

• When a transaction occurs, they are recorded initially and chronologically in a book called the GENERAL JOURNAL.

• The General Journal (GJ) is the simplest and most flexible type of journal

• Each transaction is journalized (recorded) in the general journal.

Journalizing• Write out the journal entry in good form:

Date Account to Debit $amt

Account to Credit $amt

Explanation of entry

Each journal entry contains:

a) the date

b) the account names

c) the dollar amounts debited and credited

d) an explanation

e) the account numbers (after posted)

Other Details

• A space should be skipped between journal entries.

• A compound entry is an entry with more than one debit or credit.

• The journal entry is posted to the General Ledger that we have already learned about.

Now, we have TWO Books!

• The General Ledger (Book of Accounts)

• The General Journal (Book of Original Entry)

Summary Slide• The General Journal is used to maintain a

record of business transactions in order.

• It allows us to show which accounts were affected.

• We post to the General Ledger from the General Journal.

• Note: Sometimes we use T accounts to show the journal entry and posting to the ledger without formally recording in the books!