Question

Explain the purpose of a general journal in accounting and give at least two examples of transactions that may be recorded in this journal.​

Answer 1

Answer:

The general journal is part of the accounting record keeping system. When an event occurs that must be recorded, it is called a transaction, and may be recorded in a specialty journal or in the general journal. There are four specialty journals, which are so named because specific types of routine transactions are recorded in them. These journals are:

Sales journal

Cash receipts journal

Purchases journal

Cash disbursements journal

There could be more specialty journals, but the four accounting areas represented by these journals contain the bulk of all accounting transactions, so there is usually no need for additional journals.  Instead, by default, all remaining transactions are recorded in the general journal.

Answer 2

Answer:

Cash A/c DR. xxx

To Capital A/c xxx

(Started business )

Purchases A/c Dr. xxx

To cash A/c xxx

(Purchased goods for cash)

• Journal accounts are necessary to have a track of transactions.
• It can be checked with ledger in final accounts.