General Journal

General Journal:

It is an accounting book in which day-to-day financial transactions are recorded in the form of accounting entries in a chronological order, and are as follows:

As you notice in the above figure, the Journal contains the following columns:

1. Debit: In this column, amounts relating to the debit movement of the accounting entry are recorded.
2. Credit: In this column, the credit amounts relating to the credit movement of the accounting entry are recorded.
3. Description:In this column, the accounting entry of both debit and credit sides is recorded together with a brief explanation of the entry.
4. Entry Number:In this column, the entry number is recorded in a sequential manner.
5. Voucher Number: In this column, the name of the direct voucher (receipt, payment, journal) and its number is recorded, which proves the that financial transaction that occurred.
6. Ledger page No.: In this column, the account page number in the ledger into which the debit or credit amounts which affected the account will be posted, is recorded.
7. Date:In this column, the date of the occurrence of the financial transaction is recorded.

Types of accounting entries

Simple journal entry:

This entry contains two accounts only; one of which is recorded on the debit side and the other on the credit side, as follows:

Compound journal entry:

The compound entry contains more than one account on the debit side or on the credit side, or on the both sides, as the following:

more than one account on the debit