1. Chapter 6, Section 2 Recording Transactions in the General Journal
What Do You Think?
Why do you need to record transactions?
Glencoe Accounting Unit 2 Chapter 6 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

2. Recording Transactions in the General Journal
SECTION 6.2
Main Idea
You can use the general journal to record all of the transactions of a business.
You Will Learn
how to record a general journal entry.
how to correct errors in the general journal.
Glencoe Accounting Unit 2 Chapter 6 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

3. Recording Transactions in the General Journal
SECTION 6.2
Key Term
general journal
Glencoe Accounting Unit 2 Chapter 6 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

4. Recording Transactions in the General Journal
SECTION 6.2
Recording a General Journal Entry
The most common accounting journal is the general journal, in which all of the transactions of a business may be recorded. The general journal has two columns:
the left column for recording debits
the right column for recording credits
Glencoe Accounting Unit 2 Chapter 6 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

5. Recording Transactions in the General Journal
SECTION 6.2
Recording a General Journal Entry
This is an example of a general journal entry:
Glencoe Accounting Unit 2 Chapter 6 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

6. Recording Transactions in the General Journal
SECTION 6.2
Recording a General Journal Entry
There are seven steps to determining each journal entry:
Identify the accounts affected.
Classify the accounts affected.
Determine the amount of increase or decrease for each account affected.
Determine which accounts are debited and for what amount.
Determine which accounts are credited and for what amount.
Determine the complete entry in T-account form.
Determine the complete entry in general journal entry form.
Glencoe Accounting Unit 2 Chapter 6 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

7. Recording Transactions in the General Journal
SECTION 6.2
Recording a General Journal Entry
Here is an example showing the analysis of a business transaction and its general journal entry:
Glencoe Accounting Unit 2 Chapter 6 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

8. Recording Transactions in the General Journal
SECTION 6.2
Recording a General Journal Entry
Here is an example showing the analysis of a business transaction and its general journal entry:
Glencoe Accounting Unit 2 Chapter 6 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

9. Recording Transactions in the General Journal
SECTION 6.2
Correcting the General Journal
If an error is found, it must be corrected.
Do not erase an error. Draw a line through it with a pen and enter the correct information above the line.
Glencoe Accounting Unit 2 Chapter 6 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

10. Recording Transactions in the General Journal
SECTION 6.2
Key Term Review
general journal
An all-purpose journal in which all the transactions of a business may be recorded.
Glencoe Accounting Unit 2 Chapter 6 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.