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Books of original entries

Books of original entries are books in which we first record the transactions. We record entries in them according to the nature of transactions and entries are made to them on daily basis

Need for Books of original entries

In the course of business, source documents (For example invoices, credit notes and debit notes etc..) are created. The details of these source documents need to be summarized, as otherwise the business may forget to make payment or ask for payment of cash or even accidentally pay twice. In other words business needs the record of source documents of transactions to track what's going on. These kinds of records are made in books of original entries

What are the kinds of Books of original entries?

There are many books of original entries used to record financial activities of a business and transactions are recorded in them according to the nature of transactions

  1. General journal or Day book - For recording general double entries
  2. Sales Journal or Sales day book - For recording credit sales
  3. Purchase journal or purchase day book - For recording purchases on credit
  4. Sales return journal or sale return day book - For recording sales return
  5. Purchase return journal or purchase return day book - For recording purchases return
  6. Cash receipts journal - For recording all kind of cash receipts
  7. Cash payments journal - For recording all kind of cash payments
  8. Cash book - For recording cash receipts and payments

The term Journal is also known as day book.

Now we are in position to discuss our first book of original entries The General journal.

General Journal

General journal is also referred to as Day book or Book of original entries. General journal is the place where a business first records the transactions. General journal is most commonly used to record general economic events or transactions of an enterprise


The process of recoding business transaction in a journal

The Standard format of a General Journal is given below:


Date column:
Date column is used to record the date on which a transaction occurs
Description column:
The name of accounts and concise explanation of a transaction is entered in Description column.
Post reference or Folio:
This column is completed when posting are made into ledger accounts
Debit and Credit:
The amounts to be debited or credited is entered in these columns