What are Journals?

This is a common question accounting students ask when learning accounting.

Journals show how to record a financial transaction in the ledger system.

The journal is a ‘double entry’ as it has a debit side and a credit side.

To learn how to create a journal follow the debit and credit rules.

In the accounting process the journal is the first step. It shows how the ledger accounts are adjusted.

Many users of accounting software such as  MYOB and Xero don’t understand that a journal still exists behind the user view of the system.

The journals record what business transactions have taken place. Because of this accountants and bookkeepers must check they are correct.  Adjustment journals are often made to ensure the business accounts are a true and fair representation.

Now learn more and have a teacher explain the accounting process with video, examples, games and a quiz.

Take this Introductory Accounting Tutorial Course Journals Ledgers and the Trial Balance Tutorial Course

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