The general journal is the place where debit and credit accounting entries are recorded by debiting one or more accounts and crediting one or more accounts with the same aggregate sum (dollar amount). The aggregate sum debited and the aggregate sum credited ought to dependably be equal, therefore it is ensured that accounting equation is in balance, also ensuring the balance sheet is in balance too.

General Journal - Journal Entry example
1. Date: The date column incorporates the present year at the highest point of the first column, trailed by the month and day of the transaction.The journal entries are recorded in sequential order. 2. Description: There are always three lines for each transaction: First line shows the name of the account which is being debited On the second line credited account name appears Third line is the place where the description about the transactions is being mentioned. 3. General ledger account numbers: Chart of accounts shows the account number for each of the account. This account number will be mentioned in GL NO. column. 4. Debit or credit: There two columns shows the money value of the transaction recorded in the general journal. 5. Leave a space between journal entries: Some space between two journal entries should be maintained, so that, the journal entries do not mix up.

General journal is used to record all other transactions which does not fit in any of the special journal maintained by the organization. Also general journal is used to record non-routine transactions like sale of a tangible asset, sale of property, bad debts, depreciation etc.


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