Theory question 101
Books of Original Entry(a) What is a general journal?
(b) State six uses of the general journal.
Show the model answer
Model answer
(a) The general journal (journal proper) is a book of original entry used to record transactions that do not go into any other day book, with the accounts to be debited and credited and a short narration.
(b) Any six: opening entries; purchase of fixed assets on credit; sale of fixed assets on credit; correction of errors; transfers between accounts; year-end adjustments (depreciation, provisions, accruals); writing off bad debts; set-off/contra entries; closing entries; purchase or sale of a business; issue of shares.
Explanation
Think of entries that are not routine sales, purchases, returns or cash.