General journal format

The standard format

1. Date of the entry
2. Account to be debited, with its amount in the debit column
3. Account to be credited, with its amount in the credit column
4. A narrative explaining the entry
5. Folio references to the ledger accounts

Filled example

Notes

• Debits are listed first, then credits, with a narrative beneath.
• It is used only for items not recorded in the other day books.
• The narrative states why the entry was made.

Building and reading this format

The general journal explains, not just records. The other books of prime entry handle repeated, predictable transactions.

The journal handles everything one-off or unusual. Each entry must show both what happened and why.

That is why the journal has a date column and two money columns headed debit and credit. Its particulars column is wide enough for two account names and a narrative. Write the debit account first, hard against the left of the particulars column. Write the credit account underneath and indented.

Write the narrative below that, also indented. The indentation shows at a glance which side each account is on.

To build an entry, decide which account is debited and which is credited. Suppose a business buys a delivery van on credit for RM42,000. Write the date, then Motor vehicles with RM42,000 in the debit column.

On the next line, indented, write the supplier's account with RM42,000 in the credit column. Beneath both, add a narrative such as "Being purchase of delivery van on credit".

The narrative states what the transaction was and, where needed, why it is recorded here and not in a routine book. These all belong in the journal because each needs a word of explanation. They are opening entries, buying and selling non-current assets on credit, correcting errors and writing off a bad debt.

Year-end adjustments such as depreciation and accruals belong there too. Someone who reads only the narratives should be able to follow the year's unusual events.

Check three things in a completed journal. Each entry must have equal debit and credit figures, or it cannot be posted. The accounts named must fit the transaction.

And the narrative must explain the entry, not repeat the account names. "Being motor vehicles credited to supplier" says nothing useful.

Marks are mostly lost on a few points. Putting the credit first or not indenting it muddies the double entry. Leaving out the narrative loses its marks.

Unequal debits and credits and vague dates also cost marks. When correcting an error, think first about what the wrong entry did, then write the entry that reverses it.

A common trap is reversing the error the wrong way round. For example, if a RM5,000 machine was wrongly posted to purchases, debit Machinery and credit Purchases.

If journal entries and correcting entries feel like guesswork, we can help. One of our teachers can work through a set of past-paper journals with you until the debit and credit come naturally. Book a trial class

Related how-to

• How to write a journal entry
• How to correct errors using a suspense account

These formats are standard accounting practice with our own figures. Check your board's exact requirements on the exam boards page.