Recording to the journals/

JOURNALIZING
STEP 2 of the ACCOUNTING PROCESS
JOURNAL
A JOURNAL is a chronological record of all company’s transactions
listed by date. This is often referred to a the book of original entry.
The recording of financial information into the journal is known as the
process of journalizing.
The General journal typically displays;
• Transaction’s date
• Account titles and explanation
• References
• Respective amounts of corresponding accounts
Sample format of a journal
Date 1 Account Titles and Ref 3 Debit Credit
Explanation 2 4 5
January 1 Cash 101 200 000
Shayne, Capital 301 200 000
Owner’s investment
of cash in the
business
Journalizing transactions

•The double entry system is used

•It follows that for every debit, a
corresponding credit is made.
•The total debits should equal total credits
for every transaction.
RULES OF DEBIT AND CREDIT

The basic visual representation of an account

is the T-Account. It resembles the capital
letter T: the left side contains all the debits to
the account while the right side contains all
the credits.