U2, L8 - Introduction to the Journal You have now learned...

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Introduction to the Journal You have now learned how to determine how transactions affect accounts in the ledger . For every transaction, there are at least two accounts affected, and there must be equal debits and credits in order for the transaction to balance. Up to this point, when you recorded a transaction, you recorded the debit (s) and credit (s) directly into the T-accounts in the ledger . However, this separates the debits from the credits , and so the details of any one transaction are not kept together. Therefore, a new book, called the journal will be introduced. Transactions are first recorded in the journal , chronologically (by order of date), before they are entered into the ledger . The journal is often referred to as the book of original entry because this is where transactions are first recorded, before that information is recorded in the accounts in the ledger . Each transaction that is recorded in the journal ( journal entry) includes all details of the transaction, such as the date the debit and credit accounts, the amounts, and an explanation. Shown below is a common type of journal , known as a two-column general journal . Notice that there is a column for the date, a column to record the account names, and two money columns (one to record debits and one to record credits ).
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Notice the following important features appearing on the above journal page: the page number is identified at the top page the year and month are recorded only once at the top page (the month is not
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U2, L8 - Introduction to the Journal You have now learned...

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