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Unit # 6 – The General Journal

The General Journal acts as an "Accounting Diary," where all transactions are recorded chronologically. This continuous record keeps accounting entries organized, ensuring each one balances. Journalizing involves documenting these entries, which typically affects two or more accounts. For instance, if aspiring entrepreneur Jasman is guided on how to legitimize his business following an investment, the General Journal can help him keep track of sales, purchases, taxes, and expenses. This unit provides insight into establishing proper accounting practices.

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Unit # 6 – The General Journal

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  1. Unit # 6 – The General Journal

  2. Unit # 6 – The General Journal • What is the General Journal? • It is like an “Accounting Diary” in where the all the transactions are first recorded in the order of their occurrence. • Purpose • Provides continuous record of the accounting entries as they occur • Organizes transactions and ensures that each entry balances • Provides a reference for verifying transactions

  3. Unit # 6 – The General Journal • Journalizing • The process of recording accounting entries in the General Journal • Journal Entry • The complete accounting entry for a transaction written in the journal (2 or more accounts are affected)

  4. Unit # 6 – The General Journal • How to Journalize? • Example • In last weeks class, Bryanna noticed Jasman’s fantastic Lip Syncing ability during Brittany Spears song “Gimme More”. She had a great idea!

  5. Unit # 6 – The General Journal • Bryanna:Jasman, with your fantastic Lip Syncing ability, you should open your own business • Jasman:You’re right! My style is fresh, I would make a fortune as an entertainer. I have $500 to invest, but how do I make my business legit in case I get audited after I make my Millions!

  6. Unit # 6 – The General Journal • Phillip overheard Bryanna’s and Jasman’s conversation and decided to help them out ! • Phillip: You need (and legally have to) to keep track of your Sales, Purchases, taxes, and expenses…. and I know just how to do it too!

  7. Unit # 6 – The General Journal 1st – Enter the date 2nd – Enter the account (s) to be debited and the corresponding amount Mar 18 Cash 500 Capital, J. Gill 500 Opened a Lip Syncing Business 4th – Write a brief explanation 3rd -Enter the account (s) to be credited and the corresponding amount. Particular must be indented!

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