Unformatted text preview: $600 in cash and $1200 store credit.
An example of a General Journal entry for this transaction is shown in Figure 2.
Notice that the purchase of one item required an entry for three different accounts. You can see the name
of each account under “description” and the number of the account under column ‘F.’ The General
Journal is kept in chronological order, which can be very helpful if you need to look back over the history
of your transactions. Download free ebooks at bookboon.com
20 Financial Information Related to the Budget Managing Budgets However, there is one glaring piece of information that is missing on the General Journal. You don’t see
any information about the balance in each account that you have impacted. For example, just by looking at
the General Journal, you don’t have any idea how much cash you have left after the purchase of the
computer. To track the changes in account balances, your accounting team uses a General Ledger. FY20XX Debit Equipment 144 1,800 101 600 Accounts Payable 22 F Cash Nov Description Credit 200 1,200 Purchase of Computer with $600
cash and $1200 store credit Figure 2: Example of General Journal Entry your chance
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21 Financial Information Related to the Budget Managing Budgets 3.5 The General Ledger
The General Ledger is organized by ledger accounts. There is one ledger account for each account in your
Chart of Accounts. The accountant will take the information from the General Journal and post...
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This note was uploaded on 06/07/2013 for the course BA 201 taught by Professor Cuongvu during the Fall '13 term at RMIT Vietnam.
- Fall '13