Accounting Chapter 3
Journalizing Transactions
Kayla Wegley
Basic Terms
• Journal: A form for recording transactions in
chronological order
• Journalizing: Recording transactions
• Special Amount Column: Account with a heading in
the journal
• General Amount Column: Account without a heading
in the journal
• Source document: Business paper from which
information is obtained for an entry
• Proving cash: Determining that the amount of cash
agrees with the accounting records
Types of Source Documents
Check
Memorandum
Sales Invoice
Receipt
Journalizing Transactions
• Each transaction must be journalized with the
date, Account Title, Document number, and a
credit and debit entry to a general column,
and a cash or sales column.
Journalizing an Investment
• Account title is business owners name
• Source document is a receipt
• Credit to general, debit to cash
Debit
Credit
Debit
Credit
Journalizing Purchases, On Account Purchases
• A purchase made with Cash is titled with the
account to purchase was made to, debited in
general, and credited in cash
• Purchases made on account are journalized
only in the general column because no cash is
leaving the business
Debit
Debit
Credit
Credit
Debit
Debit
Credit
Credit
Journalizing Sales
• Journalizing Sales will utilize the Sales Credit
column and the Cash Debit Column. Source
document number will always be the day of
the month. A check mark is used for the
account title, and in the Post Reference
Column
Debit
Credit
Sales
Debit
Credit
Journalizing Selling Services on Account, Paying
for Expenses, and Owner Withdrawals
• Services on account are titled with the business sold
to, debited to general, and credited to Sales
• Expenses are debited to general, and credited to
cash
• Drawing is debited to general, and credited to cash
Debit
Credit Sales
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Proving the Journal
• To prove a journal page, debits and credits
must be verified to be equal
Each column
of journal
Ruling a Journal, and Beginning a New
Page
• At the end of each journal page, each column
must be totaled and double ruled underneath.
• Totals are labeled at the end of the new page
“carried forward” and at the beginning of the
new page “brought forward”
• At the end of the fiscal period, the last journal
page is totaled in each column, and then
double ruled