General Journal in Accounting

General Journal in Accounting A general journal is a journal used to record all types of financial transaction evidence that arise from all financial transactions of a company in a certain period. This general journal is used to record various financial transaction activities chronologically according to date by including the transaction name, account group, and nominal in the debit or credit column. General Journal function There are several functions of the general journal as follows: 1. Historical Function Because journaling is done chronologically, all transactions are recorded in date order and applied on a daily basis. This journal can then also describe the company's activities every day, sequentially and continuously. This is what then makes this journal have a historical function, which records all transaction records systematically, makes it easy to track history and so on. 2. Recording Function Like other journals, of course, this type of journal also has a recording or documentation function. This is because every transaction that occurs in the company will always be recorded. This means that any changes in capital, costs, wealth or income will be recorded first in the general journal which is then used as material for preparing financial statements at the end of the period. 3. Analysis Function Although it seems like a diary, in fact, inputting data in this journal is also not done carelessly. Each record or transaction record in the general journal is the result of transaction analysis. Transactions are identified as credits and debits which also include the classification of the account, and the value of the transaction. Thus, the general journal is qualified to have an analytical function. 4. Instruction Function In addition to the three functions mentioned above, it turns out that this journal is not just a daily record because it also has an instructive function in the data input process in the ledger. This is because the recording in this type of journal does not stop at just a transaction document, but also in the form of instructions for credit or debit. 5. Informative Function As a record, of course, general journals contain a large amount of information and details related to evidence of recording transactions that have occurred. With this type of journal, various relevant information can facilitate internal and external parties in financial management matters. Benefits of General Journal in Accounting Based on its function, there are several benefits of general journals in accounting, including: • To obtain information about the increase or decrease of an estimate. • To find out the amount to be recorded in one or more estimates. • Knowing the amount debited or credited that must be balanced. • To find out the amount that has been posted to the right estimate in the general journal according to the work by making a mark (reference). • To know the amount that has been posted to the right estimate in the general journal according to the estimate number by making a mark (reference). How to make a general journal To be able to make a general journal properly, the following steps need to be applied. Check out some of the ways to make this general journal, including: 1. Understand the Accounting Equation The first way to make a general journal is to understand accounting equations. This understanding is important so that you know how to record transactions in the journal, which accounts to use and the correct debit-credit position. With this understanding, you can journal more quickly and accurately. 2. Collect and Identify Transaction Evidence The next way to make a general journal is to collect transaction evidence such as invoices, notes, invoices or even receipts. Then, proceed with transaction identification. Remember, only transactions that result in changes in financial position should be recorded in the journal. In one transaction, at least two accounts must be affected. 3. General Journal Recording The next way to make a general journal is to be able to record transactions that have been identified into a journal. This recording system will use a double-entry system, which means that each transaction recorded will have an impact on two financial positions (debit and credit) in the same amount.