The General Journal is the main bookkeeping journal of a business. Most transactions are entered into it.
Information from the General Journal is posted into the main ledger known as the General Ledger.
It is easy to set up a journal in a lined exercise book or computer spreadsheet. You need five columns.
Sample General Ledger Journal Entry:-
The first line (telephone) is against the margin which means that
this ledger account is to be debited.
Notice how the second line (bank)
is indented to show that this is the account to be credited.
There is a description line which gives a brief explanation of the supplier’s name and how it was paid.
Once the information has been posted to the ledgers, the last column ‘Ref’, also known as ‘Post Ref’ can be used in two ways:-
- Enter a ‘P’ (for posted), or
- Enter the ledger account number as in the above illustration.
If the P or the account number is not there it would mean the information has not been posted yet.
The next business transaction will be recorded directly below
this one by simply skipping one line. The whole page of the General
Journal will be filled up in this manner with business transactions as
Each page of the journal is assigned a number such as J1 for the
first page, J2 for the second and so on. This page number will be used
as a reference in the bookkeeping ledgers.