What are Journals?

Financial transactions are analysed to determine the ledger accounts affected. So from this analysis a journal is prepared.

So a journal describes how the transaction is to be recorded in the accounting system.

In a double entry system, a journal has a debit side and a credit side. Because each side is equal, the system remains in balance.

The infographic explains the double entry journal system.

the double entry journal system

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What are Journals?

What are Journals? What are journals? This is a common question accounting students ask when learning accounting. The difference between journals and ledgers confuses many people. The accounting process in theory is for journals to show the ledger accounts to be adjusted. Computerised accounting systems such as MYOB and Xero …

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How do you Post a Journal to the Ledger Accounts?

Posting a Journal to the Ledger Accounts Posting a journal to ledger accounts is key to the accounting process. The journal specifies the ledger accounts to be adjusted because of a financial transaction. The journal must have equal debit and credit items. Finally the trial balance is the summary of …

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