Bookkeeping Journal in Accounting

A bookkeeping journal is a book of prime entry sometimes referred to as a book of original entry or day-book. The journals record transactions in chronological (date) order from original accounting source documents.

 

Sub-Divisions of the Journal

The purpose of the bookkeeping journal is to avoid cluttering the general ledger with too much detail.

Journals allow the bookkeeping to be carried out by different staff with specialized accounting skills, saving time and money. In addition the separation of the bookkeeping allows for duties to be segregated and internal checks to be made reducing error and fraud.

In order to allow for similar transaction types to be grouped together and to ensure segregation of duties, the journal is usually sub-divided into the special journal and the general journal.

Special Journal

The special journal is usually sub-divided into a number of different journals depending on the requirements of the business. Each journal is used to make a chronological record of a specific type of transaction such as credit purchases or credit sales.

bookkeeping journal transactions

The examples below show sub-divisions of the special journal. The links provide further details on the use of each of the special journals listed.

Depending on the type of business, there might be additional special journals used such as for example, the payroll journal, bills receivable journal, or bills payable journal.

General Journal

The general journal records transactions which do not belong in any of the other special journals such as adjusting entries and closing entries.

The use of this journal is more fully discussed in our General Journal in Accounting post.

The diagram below summarizes the sub-division of the journal into general and special journals.

bookkeeping journals
Bookkeeping journal sub-division

Use of the Bookkeeping Journal

The bookkeeping journal simple lists transactions of a similar nature in date order. The entries in the journals are not part of the double entry bookkeeping posting.

For example, if a sales journal is used, the individual line entries in the journal are used to update the personal accounts of customers in the subsidiary sales ledger, and assuming the business uses control accounts, the period totals in the journal are used to update the ledger book using the double entry posting shown below.

Sales journal totals used to post the ledger
Account Debit Credit
Accounts receivable control 3,000
Sales 3,000
Total 3,000 3,000

The posting of special journals to the ledger is more fully discussed in our special journals to general ledger entries tutorial.

Last modified February 5th, 2019 by Michael Brown

About the Author

Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years in all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a BSc from Loughborough University.

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