Recording in the Journal and General Ledger

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Once you have your source documents, it's time to record transactions. This happens in two main books: the journal and the general ledger.


The journal is the book of first entry. Here's what you need to know:

  • Transactions are recorded chronologically
  • Each entry includes date, accounts affected, amounts, and a brief description
  • It uses the double-entry system: every debit has a corresponding credit


From the journal, transactions are posted to the general ledger. The ledger:

  • Organizes transactions by account
  • Allows you to see the balance of each account at a glance
  • Forms the basis for creating financial statements


Many businesses now use accounting software that combines the journal and ledger functions. However, understanding the manual process helps in grasping the logic behind the software.


Pro tip: Regularly review your journal and ledger to catch and correct errors early!


Edited by: Karla Pacheco 

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