Each transaction is initially recorded
by way of a journal entry in the appropriate
journal using source documents such as trade
record sheets, cheques received and issued,
and payroll data. A typical journal entry
format follows:
The journal provides a
format where transactions, or summaries of
similar transactions, are recorded based on
chronological order as they occur, resulting
in a financial record of all events for the
business. The journal is often referred to
as the book of original entry as all
transactions enter the accounting system at
this point. The term general in this area of
accounting denotes that specialized journals
may be required.
Journals
Cash Receipts
Journal
Journals required for
the recording of cash receipts and
disbursements in an accounting system. The
cash receipts journal is used to record
cheques or cash received and deposited to
the bank, while the cash disbursements
journal records all payments made by the
business. Records all cash and cheques received and deposited to the bank.
See Figure A.5.
Cash
Disbursements Journal
Records all payments
issued by the brokerage. See Figure A.6.
Payroll Journal
Records, by employee,
all monies paid by way of salaries or
commission and source deductions made where
applicable. See Figure A.7
General Journal
Records non-routine
transactions which do not align with the
parameters of the other journals, such as
bad debts and year end closing entries. See
Figure A.8.
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