Chapter 5
Journal—A form for recording transactions in chronological order
Journal Column Headings
General Amount
Columns
Special Amount Columns
 Special Amount Columns—a journal amount column headed with an
account title
 Often used when there are a large number of transactions involving
that particular account
 Example: Cash is used for almost all of the transactions we will do
in Accounting I. Therefore, Cash has a Debit (received cash) and a
Credit (paid cash) column.
 General Amount Column—a journal amount column that is not headed
with an account title
 Will be used for all other accounts
Recording Transactions
1. Date—write the date in the date column
• Month in column 1, day in column 2, and the year by the word DATE
2. Enter the name of the account that will go in the General Amount Column
3. Enter the General amount in either the Debit or Credit column
4. Enter the amount only in a Special Amount column
Example: Paid cash for supplies $500.00 , Check 4
2 8 Supplies C4
5 0 0 --
5 0 0 --
Journalizing a transaction that does
not use a Special Amount Column
 At this time, we will only have 1 transaction that uses 2 general
amount columns and zero special amount columns
 Bought Supplies on Account from Biggler Company $200 Memo 2
2 8 Supplies M4
Biggler Co.
5 0 0 --
5 0 0 --
NOTE: The date and source document are only written once per transaction
Journalizing a transaction that uses
only Special Amount Columns
 At this time, we will only have 1 transaction that uses 2 special
amount columns and zero general amount columns
 Received Cash from Sales $600 T8
2 8
T8
6 0 0 --
6 0 0 --
NOTE: A checkmark is placed in the account title column to
show no title was needed. Checkmarks are used to signify
the title was not MISSED just not needed.
Moving to Page 2 of a Journal
18 Carried Forward
1.
2.
3.
4.
5.
6.
7.
6 0 0--
1 0 0 -- 1 0 0 0-- 1 2 0 0 --
7 0 0 --
Write the day of the month in the date column.
Write Carried Forward in the account title column.
Place a single line at across the money columns only
Add each column
Prove the journal by adding Debit totals and Credit totals. They should equal.
Place a double line across the money columns showing the journal is proved.
Transfer the totals to the first row of the next Journal page by writing the date
and Brought Forward
18 Brought Forward
6 0 0--
1 0 0 -- 1 0 0 0-- 1 2 0 0 --
7 0 0 --
Completing a Journal at the end
of the month
28 TOTALS
1.
2.
3.
4.
5.
6.
7.
6 0 0--
1 0 0 -- 1 0 0 0-- 1 2 0 0 --
7 0 0 --
Write the last day of the month in the date column.
Write TOTALS in the account title column.
Place a single line at across the money columns only
Add each column
Prove the journal by adding Debit totals and Credit totals. They should equal.
Place a double line across the money columns showing the journal is proved.
Prove Cash
1.
2.
3.
4.
5.
6.
Cash on hand at the beginning of the month (see problem instructions for the amount)
Plus total cash received during the month (total of Cash Debit column)
Equals total (add 1 and 2 and put total on line provided)
Less total cash paid during the month (total of Cash Credit column)
Equals cash balance at the end of the month (subtract 4 from 3)
Checkbook balance on the next unused check stub (see problem instructions for the
amount)
7. The amount for #5 should equal the amount for #6
Example of Proving Cash
Cash on hand at the beginning of the month
$ 0
Plus total cash received during the month
$1200
Equals total
$1200
Less total cash paid during the month
$ 700
Equals cash balance at the end of the month
$ 500
Checkbook balance on the next unused check stub
$ 500