2.3 Journals

In practice, according to the double-entry system, accountants record economic transactions first in a journal after identifying these transactions and their related source documents. Journal is a chronological record of each business transaction in order of date. Sometimes the journal is also called the book of original entry, because it is the accounting record in which transactions are first recorded.

Journals can be classified into general journals and special journals. A special journal is an accounting journal designed to record a specific type of transaction. A general journal is used for transactions that do not fit one of the special journals. Of course, general journals can record the special transactions recorded in a special journal, but not vice versa. That is, an ordinary journal can be used to record any kind of economic transaction.

Still, the general journal has a disadvantage, that is different types of transactions will be recorded in a scattered situation which is detrimental for companies to reflect and control important and regular transactions. Therefore,companies need to use special journals. The common special journal includes sales journal, cash journal, and purchases journal.