Recording

Transactions:
General Journal
 1. Collection and
verification of
9. Preparing source documents
Post-Closing 2. Recording
Trial Balance business
transactions
in journal

8. Journalizing
Post-Closing 3. Posting to
Journal Entries Accounting General
Cycle Ledger

7. Preparing 4. Preparing
Financial unadjusted Trial
Statements Balance
5. Preparing
6. Preparing Adjusing
Worksheets Entries
General Journal
 A chronological record of all
financial transactions of a business
wherein it shows the complete
details of the transactions
including the debit and credit
parts.
General Journal

 Alsocalled as “book of
original entry”.
General Journal

Date Particulars Ref Debit Credit

 Journalizing
Transaction 1: On Jan. 1, Jaime Santos
invested P500,000 cash.

Cash Santos, Capital

500,000 500,000

Date Particulars Ref Debit Credit

Jan. 1 Cash 500,000
Santos, Capital 500,000
Initial investment.
 Transaction 2: On Jan. 2, Jaime Santos purchased
a building to be used as office space. The building
costs P1,200,000. He paid P200,000 cash and
issued a promissory note for the remaining
balance.

Building Cash Notes payable

1,200,000 200,000 1,000,000

Date Particulars Ref Debit Credit

Jan. 1 Building 1,200,000
Cash 200,000
Notes payable 1,000,000
Purchased office bldg.
 Transaction 3: On Jan. 3, Jaime Santos performed
Service for a client for P800,000, on account.

Accounts receivable Service fee

800,000 800,000

Date Particulars Ref Debit Credit

Jan. 3 Accounts receivable 800,000
Service fee 800,000
Performed service.