General Journal (1 Viewer)

Kirsti

Member
Joined
Nov 30, 2003
Messages
334
Location
Newcastle
Gender
Female
HSC
2004
Anything that doesn't fit into one of the others (Cash transactions, Sales or Purchases).
Stuff like when the owner introduces assets to the business and Balance Day Adjustments (which you wouldn't have covered yet)
 

sarajane

New Member
Joined
Aug 29, 2004
Messages
5
Location
New Zealand
Gender
Female
HSC
2004
Kirsti said:
Anything that doesn't fit into one of the others (Cash transactions, Sales or Purchases).
Stuff like when the owner introduces assets to the business and Balance Day Adjustments (which you wouldn't have covered yet)
And is it posted on a daily basis like the sales, purchases journals etc ?
 

Halo

Member
Joined
Nov 28, 2002
Messages
52
Location
Heaven.
Gender
Undisclosed
HSC
N/A
General Journals are essentially the entry point for almost all accounting data. All transactions and accounting adjustments are "journalised" (in chronological order) into the General Journal. The "others" Kirsti referred to are Special Journals, used to journalise specific types of accounting transactions that happen regularly (in the same form - refer to the examples given by Kirsti), and so a specific format of the journal will facilitate better understanding and easier use. Not all entities use special journals. Where special journals are used, the types of transactions that the special journal caters for will be journalised here rather than the General Journal.
 

Halo

Member
Joined
Nov 28, 2002
Messages
52
Location
Heaven.
Gender
Undisclosed
HSC
N/A
And in regards to the timing of posting to the General Ledger, the important issue is for the ledger accounts to not be materially misstated when accounting data is used (for example, to prepare financial statements). The regularity thus, I presume, would depend on an entity's circumstances.
 

Users Who Are Viewing This Thread (Users: 0, Guests: 1)

Top