The document details the format and function of a general journal, which records less regular transactions not suitable for special journals. It includes examples illustrating how to record transactions regarding stock withdrawals for personal use and bad debts due to bankruptcy. Each entry must be accompanied by a narration and may involve direct posting to both the general ledger and subsidiary ledger.

1. 7.2
FORMAT OF THE
GENERAL JOURNAL

2. © Michael Allison. Author’s permission required for external use.
 The General Journal tends to record less regular transactions that do not
belong in the Special Journals
 The General Journal doesn’t use special columns for regularly occurring
transactions as it is used to record a wide range of transactions
7.2 FORMAT OF THE GENERAL JOURNAL
General Journal
Date Details
General Ledger Subsidiary Ledger
Debit Credit Debit Credit
Date – the date of the
transaction
Details – the ledger
accounts affected by the
transactions
General Ledger – the accounts
effected in the General Ledger as a
result of the transaction
Subsidiary Ledger – the accounts
effected in the Subsidiary Ledger as a
result of the transaction

3. © Michael Allison. Author’s permission required for external use.
 Example #1:
 On March 11th the owner withdrew $1,000 of stock for personal use to give as a
birthday present to a friend – Memo 1 was written by the owner to provide
evidence of this transaction
 To complete an entry in the General Journal, a narration must be made
describing the transaction as well as the source document
General Journal
Date Details
General Ledger Subsidiary Ledger
Debit Credit Debit Credit
General Journal
Date Details
General Ledger Subsidiary Ledger
Debit Credit Debit Credit
11 Mar
General Journal
Date Details
General Ledger Subsidiary Ledger
Debit Credit Debit Credit
11 Mar Drawings [-OE]
General Journal
Date Details
General Ledger Subsidiary Ledger
Debit Credit Debit Credit
11 Mar Drawings [-OE] 1,000
General Journal
Date Details
General Ledger Subsidiary Ledger
Debit Credit Debit Credit
11 Mar Drawings [-OE] 1,000
Stock [A]
General Journal
Date Details
General Ledger Subsidiary Ledger
Debit Credit Debit Credit
11 Mar Drawings [-OE] 1,000
Stock [A] 1,000
General Journal
Date Details
General Ledger Subsidiary Ledger
Debit Credit Debit Credit
11 Mar Drawings [-OE] 1,000
Stock [A] 1,000
Owner withdrew stock for personal
use (Memo 1)
Narration –
description of the
transaction
7.2 FORMAT OF THE GENERAL JOURNAL

4. © Michael Allison. Author’s permission required for external use.
 Example #1:
 The entries in the General Journal are then posted directly to the General Ledger
General Journal
Date Details
General Ledger Subsidiary Ledger
Debit Credit Debit Credit
11 Mar Drawings [-OE] 1,000
Stock [A] 1,000
Owner withdrew stock for personal use
(Memo 1)
Drawings [-OE]
31/3 Stock 1000
Stock [A]
31/3 Drawings 1000
Posted on last day of
period
Posted on last day of
period
Entered on actual
day of transaction
7.2 FORMAT OF THE GENERAL JOURNAL

5. © Michael Allison. Author’s permission required for external use.
 Example #2:
 On March 21st the business discovered that a debtor (J. Smith) was declared
bankrupt and would not be able to repay the $500 owed to the firm
 Memo 2 was written by the owner as evidence of this bad debt expense
General Journal
Date Details
General Ledger Subsidiary Ledger
Debit Credit Debit Credit
21 Mar Bad debts [E] 500
Debtors control [A] 500
Debtor – J. Smith [A] 500
Owner withdrew stock for personal
use (Memo 1)
General Journal
Date Details
General Ledger Subsidiary Ledger
Debit Credit Debit Credit
21 Mar Bad debts [E] 500
Debtors control [A] 500
Debtor – J. Smith [A] 500
Owner withdrew stock for personal
use (Memo 1)
General Journal
Date Details
General Ledger Subsidiary Ledger
Debit Credit Debit Credit
21 Mar Bad debts [E] 500
Debtors control [A] 500
Debtor – J. Smith [A] 500
Owner withdrew stock for personal
use (Memo 1)
General Journal
Date Details
General Ledger Subsidiary Ledger
Debit Credit Debit Credit
21 Mar Bad debts [E] 500
Debtors control [A] 500
Debtor – J. Smith [A] 500
Owner withdrew stock for personal
use (Memo 1)
General Journal
Date Details
General Ledger Subsidiary Ledger
Debit Credit Debit Credit
21 Mar Bad debts [E] 500
Debtors control [A] 500
Debtor – J. Smith [A] 500
Owner withdrew stock for personal
use (Memo 1)
General Journal
Date Details
General Ledger Subsidiary Ledger
Debit Credit Debit Credit
21 Mar Bad debts [E] 500
Debtors control [A] 500
Debtor – J. Smith [A] 500
Owner withdrew stock for personal
use (Memo 1)
General Journal
Date Details
General Ledger Subsidiary Ledger
Debit Credit Debit Credit
21 Mar Bad debts [E] 500
Debtors control [A] 500
Debtor – J. Smith [A] 500
Owner withdrew stock for personal
use (Memo 1)
General Journal
Date Details
General Ledger Subsidiary Ledger
Debit Credit Debit Credit
21 Mar Bad debts [E] 500
Debtors control [A] 500
Debtor – J. Smith [A] 500
Debtor J. Smith declared bankrupt
(Memo 2)
7.2 FORMAT OF THE GENERAL JOURNAL

6. © Michael Allison. Author’s permission required for external use.
General Ledger Subsidiary Ledger
Debtor – J. Smith
21/3 Bad debts 500
 Example #2: The entries in the General Journal are then posted directly to the
General Ledger and the Subsidiary Ledger…
General Journal
Date Details
General Ledger Subsidiary Ledger
Debit Credit Debit Credit
21 Mar Bad debts [E] 500
Debtors control [A] 500
Debtor – J. Smith [A] 500
Debtor J. Smith declared bankrupt (Memo 2)
Bad Debts [E]
31/3 Debtors control 500
Debtors Control [A]
31/3 Bad debts 500
Posted on last day of
period
Posted on last day of
period
Entered on actual day of
transaction
Entered on actual day of
transaction
7.2 FORMAT OF THE GENERAL JOURNAL

7. © Michael Allison. Author’s permission required for external use.
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In-class Homework
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