What is a Journal?
In accounting, a journal is a document used to record business transactions.
How it Works
In the days of manual accounting systems, a business would have a series of journals.
Some of these journals were for cash transactions.
Others were for credit transactions.
Still others were for non day-to-day transactions.
The information for the journals came from source documents.
These documents included things like invoices, checks, credit notes etc.
The recording process continued on a daily basis throughout the month.
At month-end, you would total each journal column.
After this, you would take the total of each journal column.
And post this total to the appropriate account.
© R.J. Hickman 2020