Describe a General Journal.

      

Describe a General Journal.

  

Answers


Kavungya
General Journal is also known as Journal Proper. It is used to record transactions or correspondences that are not in other prime books. It contains the date, details, debit and credit columns, explanation/ narrative of the transaction and folio reference to source documents.
The General Journal uses double entry system where a debit entry must be corresponded with a credit entry or a set of credit entries and vice versa.

Uses of a General journal
1.) Used to correct presence of any errors in ledger accounts.
2.) Used to make necessary adjustments to entries in the ledgers.
3.) Records purchase and sale of non current assets on credit.
4.) Used to record bad debts written off.
5.) Records opening and closing balances of assets and liabilities.
6.) Records drawings for goods or other assets from the business by the owner.

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Kavungya answered the question on August 17, 2021 at 08:27


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