General Journal

general journal

The General Journal is the book in which the entity initially notes all daily financial activities. It is also known as a book of initial entries since all transactions are recorded before being transferred to other books.

Other non-financial transactions that occur in the business are also recorded in this book by the corporation. Depreciation, adjustments and an accrual were all part of the non-financial transaction. These financial activities include sales, purchases, cash receipts, cash payments, and various other essential financial transactions.

What is another name for the general journal

In simple accounting terminology, a general journal is also known as a “book of original entry,” an accounting system in which all transactions are recorded initially according to the date they happened.

Read More About Accrual basis


A general journal is an initial location where data is recorded, and each page has dividing columns for dates, serial numbers, and debit or credit entries. Some businesses retain specialized journals, such as buy or sales diaries, that exclusively record certain transactions.



it is essential because it is a general diary is a chronological record of all company transactions. It is the company’s first point of entry into its accounts. All accounting transactions should be reviewed in the general Journal. In most cases, a transaction is posted to the general Journal before posting it to the general ledger.


general journal entries examples

Assets sales, depreciation, interest income, interest expenditure, and stock sales are all examples of transactions documented in the general Journal.



The primary distinction between Journal and Ledger is that the Journal is the first step of the accounting cycle. All accounting transactions are analyzed and recorded as journal entries. In contrast, the ledger is an extension of the Journal in which journal entries are recorded by the company in its general ledger account based on which the company’s financial statements are prepared

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