In the world of accounting, you may often hear about financial journals. Journal is one of the stages in the accounting cycle cloud bookkeeping. Therefore every time you make a transaction, it must always be recorded in a journal. Journals have various types, such as general accounting journals, Cloud bookkeeping services, special journals, adjusting journals, closing journals, reversing journals, and so forth. Do you understand all of these journal types?
Journal is a form that is used to record every type of transaction carried out systematically and in detail. Each transaction must be recorded according to the date and transaction description. In addition, the amount must also be the same between debits and credits. To record transactions in a journal, you must prepare a proof of transactions such as invoices, receipts, notes, etc. as the basis for recording them. Journal records or journaling activities are important because journals are the link between transactions with ledgers and subsequent accounting cycles. The journal functions as follows:
Recording function, all transactions must be recorded in accordance with proof of transaction.
Historical functions, transactions must be recorded systematically in accordance with the order of time.
The analysis function, the recorded transactions must be analyzed the evidence and grouped in the debit or credit side.
Instructive function, a journal entry is an order to make transfers in the general ledger.
Informative function, by looking at the journal you can find out information about a transaction.
As mentioned earlier, in the world of accounting there are various types of journals. Some of them are like:
General Journal of Accounting
Public journals are places to record all company financial transactions in a certain period systematically. To keep an accounting general journal, you must understand the normal balance of each account. In accounting, there are five accounts that you need to know the position of the normal balance.
Special journals are journals that are grouped specifically according to the type of transaction. This particular journal is grouped because of its transactions that often occur every month.
Adjusting journal entry
The third type of journal you need to know is adjusting entries. An adjustment journal is a journal that is made at the end of an accounting period to compare the amount recorded whether it is the same as the same recognition period.