Journal

Journal (Definition)

A journal is a record of financial transactions in order by date.

Key aspects of journals include:

1. Serves as the first point of entry for all transactions in the accounting process
2. Uses double-entry bookkeeping, with each transaction affecting at least two accounts
3. Provides a chronological record of all financial events
4. Includes details such as date, accounts affected, amounts, and brief descriptions
5. Forms the basis for posting transactions to the general ledger
6. Can be general journals or specialized journals for specific types of transactions
7. Essential for maintaining an audit trail and ensuring accuracy in financial records

Understanding and properly maintaining journals is fundamental to accurate bookkeeping and financial reporting.