Understanding and Function of General Journal in Accounting
General Journal is a journal used to place records for all types of evidence of financial transactions that arise due to the occurrence of various financial transactions of the company in a certain period. In general, this journal is used in accounting service companies because in principle all transactions in service companies can be recorded chronologically, while the accounting of trading companies more effectively using a special journal.
The making of a general journal or also called journalism has the purpose of identifying, appraising, and recording the economic impact of a transaction or several transactions within the company. In addition, this record also aims to facilitate the process of moving the impact of transactions that occur into an account as a transaction.
Basic Principles of General Journal Creation
In making general journals, there are some basic principles that you need to pay attention to:
Identify evidence of financial transactions conducted by the company. Examples of proof of transactions include invoices, receipts, notes, memos, and so forth.
Determine which accounts are affected by the transactions that occur and classify them in the type of property, debt, or capital.
Sets the addition or subtraction of accounts associated with the transaction.
Define to debit or credit the account associated with the transaction that occurred. Previously, you must have mastered how to determine debit-credit in an account.
Record transactions into general journals in accordance with the proof of the transactions it undertakes.