General Journal

General Journal is used to record transactions that cannot fit into any other journals. Example of transactions that usually recorded in general journal are:

1. Start business
   
2. Balance transafer
3. Purchase or sell fixed asset
4. Owner withdraws business items for own use
5. Owner brings in asset to increase capital
6. Adjustment entries
7. Correction to entries
8. Terminate the business

General Journal usually contains the following 5 columns:

1. Date
2. Description
3. Folio
4. Debit
5. Credit

Entries to the journal must be sorted according to the day where the transaction occured. Folio is the reference column in the journal. It is used when posting of journal to ledger.