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The general journal is a daybook used to record transactions relating to adjustment entries, opening stock, accounting errors etc. It shows the account to be debited and credited in the different ledger books with a short explanation or narration.

The general journal has columns for date, particulars, folio, debit and credit.

The source documents of this prime entry book are; journal vouchers, copies of management reports and invoices.

Uses of General Journals:

  • It is used for the recording of sales of fixed assets on credit.
  • It is used for recording the purchase of fixed assets on credit.
  • It is used for opening stock entries.
  • It is used for closing stock entries.
  • It is used for the correction of errors.

General Journal Format:

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Example: 20th Dec. 2018 I-Dallas ltd. sold a television set to Mr Mike for ₦45,000. Post this transaction into the Journal proper.

Rules for Entering The Transaction:

Step 1: Identify the two accounts
and their names.
Answer: Sales A/c and Mike A/c in
the book of I-Dallas ltd.
Step 2: Who is receiving and
who is giving?
Answer: Mike is receiving
while I-Dallas ltd. Is giving.
Step 3: Apply the Double entry system rule:
Debit the receiver and Credit the giver.
Step 4: Post the transaction into the
Journal proper.

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Assets are properties or things owned by a business organisation which are used for the day to day running of the business activities.

Fixed assets are those properties which are permanent in nature and can be used for over one year e.g Land, building, office equipment motor vehicle, machinery etc.


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