The General Journal


If a business uses Special Journals such as Cash Receipts, Cash Payments, Sales and Purchases Journals, why would they need to use a General Journal? This is because there are certian transactions that do not fit into these journals. The main types of transactions that are recorded in the General Journal are:

  • entries to commence business
  • non-cash transactions involving the owner
  • bad debts
  • correcting entries
  • closing entries
  • balance day adjustments

See if you can make up a transaction for each of the six situations listed above.