What is a general journal❓
What is a general journal❓
general journal They are intended to record other items that cannot be recorded in a purchase, sale, pay, and receive journal, or that cannot be recorded in a specific journal.
📍 Information that should be in a general journal
- The date the transaction occurred
- Account number
- Account name
- Item Description
- Debit and credit balance
📍Most of the items that are recorded in the general journal are:
- Depreciation
- recording of amortization of intangible assets
- Period-end exchange rate updates
- Setting up a complete estimate of accrued expenses
- Correction of errors in accounting records
- Recording of accrued corporate income tax
- Inventory adjustment list and account related to cost correctly
📍Benefits of a general journal
- Can reduce errors in accounting
- Make aware of the items that happened before and after
- Makes searching for the past list more convenient
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