Recording Transactions
in a General Journal
Chapter 4
Journals- A form for recording
transactions in chronological order
 Journalizing- the act of recording
transactions into a journal
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◦ Each business uses whichever journal meets
their needs.
Journals and Journalizing
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Entry- each transaction that is recorded into
the journal
General Journal- A journal that has two
amount columns in which all kinds of entries
can be made.
◦ Has 6 parts
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Date
Account Title
Doc. No.
Post Ref.
Debit
Credit
Journals and Journalizing

Journals need to be
◦ Accurate
◦ Chronological order
Journals and Journalizing

Double Entry Accounting
◦ Always will have a debit and a credit for each
entry
◦ Always will affect two different accounts
Journals and Journalizing

Source Documents- a business paper
form which information obtained for the
journal
◦
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◦
◦
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Checks
Invoices
Receipts
Memorandums
Calculator tapes
Journals and Journalizing

August 1, Received cash from owner as
investment $10,000. Receipt No. 1
◦ 1. Date- Write the date in the date column
◦ 2. Debit- Write the title of the account to be debited
in the account column. Write the amount in the
debit column
◦ 3. Credit- Write the title of the account to be
credited in the account column. Write the amount in
the debit column.
◦ Source Document- in the Doc. No. Column, write
the type of source document and the number.
Journalizing
August 3. Paid cash for supplies 1,577.
Check No. 1
 August 4. Paid cash for insurance 1,200.
Check No. 2
 August 7. Bought supplies from Ling Music
Supplies on account 2,720. Memo. No. 1

Journalizing
August 11. Paid cash on account to Ling
Music Supplies 1,360. Check No. 3
 August 12. Received cash from sales 325
Tape No. 12
 August 12 Sold services on account to
Kids Time 200 Sales Invoice No. 1

Journalizing