General journal

Definition

A general journal is a primary accounting record where all financial transactions are initially recorded in chronological order. It serves as the first point of entry for accounting data before posting to the general ledger.

5 Must Know Facts For Your Next Test

1. The general journal includes details such as date, accounts affected, amounts, and a brief description of the transaction.
2. Each entry in the general journal consists of a debit and a credit that must always balance.
3. Recording transactions in the general journal is part of the bookkeeping process known as journalizing.
4. The general journal is used for transactions that do not fit into specialized journals like sales or purchase journals.
5. Proper documentation and accuracy are critical when recording entries in the general journal to ensure reliable financial statements.

Review Questions

Related terms

General Ledger:

A comprehensive record containing all accounts used by a business, where entries from the general journal are posted.

Special Journals:

Journals designed for recording specific types of recurring transactions, such as sales or purchases.

Journalizing:

The process of recording financial transactions in an accounting journal.