Month End Glossary

Journal

A journal serves as a chronological record of all financial transactions relating to a company before being categorized into the general ledger.

A journal is a foundational accounting record where all financial transactions are recorded in chronological order as they occur. Each entry includes detailed information about the transaction, such as the date, accounts affected, amounts debited and credited, and a brief narration describing the transaction. Journals play a critical role in ensuring that the business's accounting system stays organized by providing a clear and detailed trace of financial activities before summarizing them into the general ledger.

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