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A good accounting system must be able to
handle transactions in order, even if they are
happening at a rapid pace. The chronological
journal is a centuries-old device that keeps
track of business transactions
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Is a book in which the accounting entries for
all transactions are first recorded, before they
are recorded in the ledger accounts.
Transactions are recorded in the order of
their occurrence.
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The simplest form is the two-column general
journal (see Figure 6.1)
A journal entry is made up of all of the
accounting changes for one transaction, in the
form in which they are written in the general
journal
The debited account and amount are recorded
first. The credited account and amount are
recorded second and are indented. Debits =
Credits
Each journal entry ends with a brief explanation
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1. The year: Enter the year in small figures on
the first line of each page. Not repeated for
each entry. Enter a new year at the point on
the page where it occurs
2. The month: Same rules as year
3. The day: Enter the day on the first line of
each journal entry. Day is always written.
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1.
2.
3.
4.
The date
Debit account(s)
Credit account(s)
Explanation
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Chief purpose is to provide a continuous
record of the accounting entries
Accounting entries come from source
documents
The entry clerk should see that each entry
balances and generally that everything is in
order
If entered properly it reduces errors and
prevents problems from occurring later
Useful for reference of transactions
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Every accounting entry is recorded first in the
journal
The financial position provided by a balance
sheet would be your opening entry
The journal entry that starts the books off, or
“opens” them, is known as the opening entry