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

Now learn more and see how journals work with our low cost business tutorials.