A General Journal Used For The Keeping Of Records For Financial Transactions

889 Words Feb 9th, 2016 4 Pages
A general journal is a journal used for the keeping of records for financial transactions in chronological order. The general journal is also referred to as the book of original entry. Along with the general journal, there can also be specialty journals. Specialty journals are those in which you record specific type of transactions. The four main specialty transactions are sales, cash receipts, purchases, and cash disbursements. All of the financial transactions are recorded in debit and credit format. Each entry into the general includes date, amount, account names involved, and a short narration of the transaction. When entering these transactions, it is important that both the total of debit and the total of credit are equal to each other.

General Ledger

A general ledger is the main accounting records with a complete record of financial transactions within a business. The general ledger is also known as the book of final entry. All recorded transactions relate to the business 's assets, liabilities, owner 's equity, revenue, gains, losses and expenses. Businesses can opt to either use a physical general ledger and/or electronic general ledger. Many businesses in this era choose to have an electronic general ledger as opposed to a physical general ledger, due to the amount of paperwork required. In relevance to the general ledger, posting also occurs. Posting is the process of transferring the debits and credits from the general journal. Just like the general journal…
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