THE JOURNAL

1
CHAPTER 6.1

• THE JOURNAL

2
THE GENERAL JOURNAL

• A book in which the accounting entries for all
  transactions are first recorded, before they are
  recorded in the ledger accounts
• Fills the need to record all parts of a
  transaction in one place
• Includes date, debit, credit and brief
  explanation
• Advantages
• Fewer errors
• Easy to check all debit and credit entries made
• Chronological order
• Gives idea of volume of business
• Convenient picture of days business

3
Recording Journal Entries
16
Supplies
1 3 5
Bank
1 3 5
Letterhead and envelopes cheque 40
12
Equipment
12 0 0 0
A/PWorld Wide Fibre Optics
10 0 0 0
Bank
2 0 0 0
Network software installation issued cheque41
with the balance due in 30 days.

• Indent and enter the credit account(s)

• Enter the date

• Enter the debit account(s)

• Write a brief explanation (at left margin)

• Enter the credit amount(s)

• Enter the debit amount(s)

• Skip a line and complete next entry

4
General Journal Facts
16
5
Opening Journal Entry
1

• Amounts in the opening journal entry are the same
  as amounts on the opening balance sheet