General Journal (1 Viewer)

[sarajane]

I'm very very new to accounting.

What entries exactly go into the General Journal.??

 

[Kirsti]

Anything that doesn't fit into one of the others (Cash transactions, Sales or Purchases).
Stuff like when the owner introduces assets to the business and Balance Day Adjustments (which you wouldn't have covered yet)

 

[sarajane]

Anything that doesn't fit into one of the others (Cash transactions, Sales or Purchases).
Stuff like when the owner introduces assets to the business and Balance Day Adjustments (which you wouldn't have covered yet)

And is it posted on a daily basis like the sales, purchases journals etc ?

 

[The_dude]

:gridnod:

 

[Halo]

General Journals are essentially the entry point for almost all accounting data. All transactions and accounting adjustments are "journalised" (in chronological order) into the General Journal. The "others" Kirsti referred to are Special Journals, used to journalise specific types of accounting transactions that happen regularly (in the same form - refer to the examples given by Kirsti), and so a specific format of the journal will facilitate better understanding and easier use. Not all entities use special journals. Where special journals are used, the types of transactions that the special journal caters for will be journalised here rather than the General Journal.

 

[Halo]

And in regards to the timing of posting to the General Ledger, the important issue is for the ledger accounts to not be materially misstated when accounting data is used (for example, to prepare financial statements). The regularity thus, I presume, would depend on an entity's circumstances.