if i sign an insurance contract for two years worth 24000, the payment is after two months, what is the general journal(unadjusted and adjusted)
- CameronLv 68 years agoFavorite Answer
The general journal is used to record transactions which do not fit the requirements of the specialist journals such as the cash receipts journal, the cash payments journal, the sales journal and the purchases journal. It records all other transactions. These transactions are varied, hence the name 'general' journal.
The format of the general journal provides a guide for posting to the general ledger. It identifies the accounts to be debited and credited and then gives a brief explanation of the transaction (this is called a narration). If a business did not maintain specialist journals, all transactions could be recorded through the general journal.