General Journal

The General Journal

To simply recap a bit on what you have learned so far, you should be able to recognize that all cash sales or cash purchases should be recorded in cash book and that all credit sales or purchases should be recorded in sales journal, purchases journal, return inwards journal and returns outwards journal.

Any other transactions that are NOT related to cash or credit sales or purchases will be recorded on General Journal.

General Journal should contain the following transactions:
1) The date.
2) The name of accounts to be debited and the amounts.
3) The name of the accounts to be credited and the amounts.
4) Narrative, a description and explanation of the transaction.

Generally speaking, any items not related to
1) Cash sales
2) Cash purchases
3) Credit sales
4) Credit purchases
5) Return outwards
6) Return inwards
So any other transactions that are not related to the above will need to be entered into the GENERAL JOURNAL.

Format of General Journal

General Journal

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