What is General Journal
General journal may define as;
An accounting record where all business transactions are originally entered.
A journal details which transactions occurred and what accounts were affected.
Journal entries are usually recorded in chronological order, and using the double-entry method of bookkeeping.
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The standard form of General Journal is given as under:
|Date||Description||Post reference||Debit Amount||Credit Amount|
In this column the date on which the transaction is completed is recorded.
In this column the account is to be Debited is inserted at the extreme left, and account is to be credited below it after providing some space on left side brief explanation of entry is also recorded in this column generally known as narration.
This column is completed when posting are made into ledger.The page no of the concerned account in ledger is written .The students are advised to insert a “tick mark” while posting the entries from journal to ledger.
Two amounts column are provided in journal.The amount of transaction is recorded in the debit column against the account to be debited and the amount of the account to be recorded in credit column.
When the entry has been made a brief explanation of the transaction is generally recorded below it, for reference to original transaction A line is drawn after it in the description column only.