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