What is a General journal?

General journal is a Day Book, Journal, or Book of original entry. In General journal all Day-to-day Accounting transactions are recorded. These transactions must exclusively relate to the business entity. Transactions are extracted from source documents( Invoices, receipts, cheques, purchase order, etc) and recorded as Journal entry, adjusting entry, closing entry, etc.
When a transaction take place. it is recorded in General journal in the form of journal entry. General journal usually has 5 columns for the following:
  1. Date of the transaction.
  2. Particulars/ Description of the transaction.
  3. Posting reference( For general ledger).
  4. Amount to be debited
  5. Amount to be credited.
The amount written in Debit, and credit column must always be equal. This means that there can be more than one account on each column(Debit, Credit), but the aggregate balance of both sides must be equal in a journal entry.