It is the first book in which the transactions of the business are initially recorded. In this book, transactions a corded in chronological order, i.e. date wise. Each record in the general is called an entry. General journal is also considered as book of original entry. A journal entry analyze the underlying transaction as it occurs. It also contains some description of the transaction.
Before a journal entry is passed, it should be decided for each transaction, what accounts are involved rich is to be debited and which is to be credited.
FORMAT OF GENERAL JOURNAL
The year is written at the top of the date column on each page of the journal. Along with the date the month and respective day is also written.
The description column is the column for the explanation of the entry and the debit and credit of the amount. It explains that what the transaction is and which accounts are involved in that specific transaction. A short explanation of the transaction known as narration also to be added for clearly explanation of the transaction.
The Ledger Folio column is filled when the accounts debited and credited are posted to ledger accounts; the page number of the relevant ledger account is mentioned in this column.