The General Journal, often referred to as the primary book of accounting, is where all financial transactions of a business are recorded in a chronological manner. Each entry in the General Journal includes detailed information such as the date of the transaction, a description, and the debit and credit amounts. Recording transactions in the General Journal is often the first step in the accounting cycle, ensuring that all financial activities are documented accurately before being transferred to the General Ledger. For instance, if a company makes a sale or incurs an expense, these occurrences are first recorded in the General Journal.

Proper maintenance of the General Journal is crucial for preparing financial statements and conducting audits. By having a comprehensive log of all transactions, businesses ensure transparency and accountability in their financial processes. An example usage of the term would be: "I recorded the monthly rent payment transaction in the General Journal to maintain an accurate account of our expenses." The General Journal complements other accounting tools such as Balance Sheet, Trial Balances, and Cash Flow Statements in the broader financial reporting process.

Related terms in accounting include the General Ledger, Journal Entries, and Chart of Accounts, all of which work together to provide a complete picture of a business's financial activities.