The Journal

Uploaded by AccountingWITT on 29.09.2011

After the Transaction Analysis has been completed for a particular Transaction, the Transaction
must be Journalized.
A transaction is Journalized in the Journal.
The main Journal for a company is called the General Journal.
This is what a Journal might look like
There is a date column
an account title and explanation column
a reference column, which might contain a number for referencing an account, a transaction,
or source document.
and then finally, a debit and credit column.
When a transaction or entry is entered into the Journal, it is called a Journal Entry.
This is how an account is Journalized with a Journal Entry
We must think back to the Transaction Analysis step of the Recording Process
Whichever accounts were determined to have been affected by the transaction will now
be recorded in the journal
The Account Titles are written in the Account Title Column.
Each account will have its own line on the Journal, with the date for the transaction
being written on the first line.
It is common practice when recording journal entries to list the accounts that will be
have a debit entry first.
Then, the accounts that will have a credit entry are written next, with an indention
on their account title
We will write a Debit or a Credit amount for each account showing how much the account
increases or decreases.
(If you do not understand debits and credits, make sure to watch AccountingWITT videos on
that topic)
After the Debit and Credit Entries are entered, the journal entry is complete.
For reference purposes, an explanation can be written, and or references can be written
in the reference column.
By Journalizing a transaction, we are able to show the effects of a transaction on the
affected accounts.
As a review,
The journal is a chronological listing of all of the transactions of a business.
Each Journal Entry consists of at least one Debit and Credit entry for each Account affected
by a particular transaction
After a transaction is Journalized in the journal, it is time for the next step of the
recording process.