Journal
Definition
A journal is where transactions are first recorded in chronological order. Each journal entry shows the date, accounts, and debit and credit amounts.
Example
On March 5, the business records a $200 office supply purchase. The journal entry shows the date, the debit to Office Supplies Expense, and the credit to Cash.
Why It Matters
The journal is the first step in the bookkeeping flow. From the journal, entries are posted to the general ledger.