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Chapter 6.1
CHAPTER 6.1
THE JOURNAL
Chapter 6.1
THE GENERAL JOURNAL
• A book in which the accounting entries for all transactions are first recorded, before they are recorded in the ledger accounts
• Fills the need to record all parts of a transaction in one place
• Includes date, debit, credit and brief explanation• Advantages:
– Fewer errors– Easy to check all debit and credit entries
made– Chronological order– Gives idea of volume of business– Convenient picture of day’s business
Chapter 6.1
• Indent and enter the credit account(s)
Recording Journal Entries
Supplies 1 3 5 –
Bank
Letterhead and envelopes; cheque #40
12 Equipment
A/P—World Wide Fibre Optics
Network software installation; issued cheque
#41 with the balance due in 30 days.
12 0 0 0 –
Bank
10 0 0 0 –
2 0 0 0 –
1 3 5 –
• Enter the date
99Nov.Nov.20—20—
• Enter the debit account(s)• Write a brief explanation (at left margin)
• Enter the credit amount(s)• Enter the debit amount(s)• Skip a line and complete next entry
16
Chapter 6.1
General Journal Facts
Supplies 1 3 5 –
Bank
Letterhead and envelopes; cheque #40
12 Equipment
A/P—World Wide Fibre Optics
Network software installation; issued cheque
#41 with the balance due in 30 days.
12 0 0 0 –
Bank
10 0 0 0 –
2 0 0 0 –
1 3 5 –
99Nov.Nov.20—20—
16
• Account titles are capitalized• A “compound entry” affects more than two accounts
• Each journal entry balances• Consecutive page numbers
Chapter 6.1
Opening Journal Entry
1
• Amounts in the opening journal entry are the same as amounts on the opening balance sheet
Bank
Supplies
Equipment
Bank Loan
Opening financial position of Shirley Cassar
19 5 5 0 –
Shirley Cassar, Capital
10 0 0 0 –
1 4 0 0 –3030Oct.Oct.20—20—
Automobile
22 0 9 0 –
8 7 1 5 –
2 4 2 5 –