This provides information on how to record financial transactions on the general ledger and on the journals and more. Check and follow me for more info on Financial accounting
Unit 2: Recording Financial Transaction
There are different transactions that take place in the business.
Meaning, there are cash purchase transactions (recorded in cash journa
credit transactions (recorded in credit transactions journals) and transacti
that are recorded in Genaral Journal. But we can also record al transactio
GJ
This unit introduces you to recording transactions in the General Jour
posting to the General ledger and closing off ledger accounts.
Initially, transactions are recorded in the General Journal, then, posted to
general ledger.
Posting to the general ledger is done following the double entry principle.
, Unit 2: Recording Financial Transactions
Format of a General Journal (GJ)
A general journal normally records the date, the account debited,
account credited, the amounts applicable to each account and als
description of what the transaction relates to. The format of the gene
journal is as follows:
Date Details of accounts Debit amount Credit amount
Account debited R 000
Account credited R 000
Narration/ description of the
transaction
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