General Journal
What is a General Journal
The general journal is a specialized journal for recording transactions such as start-up transactions, period-end adjustments, and correcting entries.
![gj1](https://seeaccountingnow.online/wp-content/uploads/2020/04/gj1.jpg)
How it Works
In the days of manual accounting systems, you recorded a business’s transactions in a series of journals.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/gj2.jpg)
You recorded a business’s day-to-day cash transactions in cash journals (for more, see cash payments journal, cash receipts journal)
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/gj3.jpg)
Then you recorded day-to-day credit transactions in the credit journals (see sales distribution journal, purchases distribution journal)
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/gj4.jpg)
Finally, there was the general journal.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/gj5.jpg)
The general journal is still in use today.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/gj6.jpg)
It is the only area where you still need a knowledge of debits and credits.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/gj7.jpg)
You use the general journal to record things like business start-up entries.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/gr8.jpg)
To start a business, the business owner may use some of their own capital.
![gr9](https://seeaccountingnow.online/wp-content/uploads/2021/06/gr9.jpg)
The business owner will put this money in the business’s bank account.
![gr10](https://seeaccountingnow.online/wp-content/uploads/2021/06/gr10.jpg)
To record the transaction, you credit owners capital.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/gr11.jpg)
This shows money has come from the owners own capital.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/gr12.jpg)
Then you debit the checking account.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/gr13.jpg)
This shows the money was deposited in the bank.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/gr14.jpg)
© R.J. Hickman 2020