General journal
From Wikipedia, the free encyclopedia
The general journal is a book of original entry where double entry bookkeeping entries are recorded by debiting one account and crediting another account with the same amount. The amount debited and the amount credited should always be equal.
This equality ensures that the equality of the accounting equation:
is maintained. The accounting equation is the mathematical structure of the balance sheet.
A general journal entry includes:
(1) The date of the transaction;
(2) Titles of the accounts debited and credited;
(3) The amount of each debit and credit; and,
(4) An explanation of the transaction.
[edit] Example
Date: mm/dd/yyyy
| General ledger account title | Debit | Credit |
|---|---|---|
| Phone expense | $200 | |
| Cash | $200 |
Explanation: To pay telephone bill
A journal entry is, in general, an entry in an accounting journal that debits and credits a general ledger account by the same amount.
