Glossary · Also called General journal
Journal
A book used to record transactions that don't fit the other day books, with a note of why.
What it means
The book of prime entry used to record non-routine transactions, showing the accounts to be debited and credited and a narrative.
Example
The purchase of a non-current asset on credit is recorded in the journal.
Why it matters
It provides an ordered first record and an explanation before entries reach the ledger.
In practice
The general journal is a book of prime entry for transactions that have no day book of their own. Examples are opening entries when a business starts its books, buying or selling non-current assets on credit, and correcting errors. Others are writing off irrecoverable debts and year-end adjustments such as depreciation. Each entry names the account to debit, the account to credit, the amount and a narrative explaining why.
For example, suppose a RM90 sale was wrongly posted to rent. To correct it, you would debit rent and credit sales RM90, with a narrative noting the correction. The figures are then posted into the ledger accounts.
Students often confuse the journal with the cash book. The cash book is both a book of prime entry and part of the ledger, and it deals only with money in cash and bank. The journal records no money directly. It is an instruction telling the bookkeeper which accounts to adjust and why.
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Related terms
Syllabus reference: Cambridge 0452 and 0985, syllabus for 2027 to 2029, sub-topic 3.2 Correction of errors (page 13).
Definitions here are general accounting explanations for study. For your board's exact wording, see its official syllabus via Sources.
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