Rules in recording in General Journal

Below are the rules to follow when recording in General Journal.

1. Record the debit entry first, then followed by credit entry for each transaction.
2. Credit entry is indented from the debit entry.
3. Date for each transaction MUST be recorded.
4. Each transaction must be described with clear description with parentheses around the description.
5. Each entry in the General Journal must be posted to the relevant account in ledger. Folio column is used to record the reference when doing posting.