How to Journalize Accounting Transactions
Accounting transactions are the financial representation of business activity. Accountants post journal entries as part of the accounting cycle. Each month, accountants gather information and post transactions into the company's general ledger. The aggregate total of all transactions present a financial review of a company's business activity. Journal entries must follow specific guidelines to meet the requirement for double-entry accounting. Failure to include the necessary information in each entry can throw the general ledger out of balance.
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Instructions
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Gather information to document the journal entry. These documents provide support for the transaction date, dollar amount and parties involved in the transaction.
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Review the general ledger account to determine which accounts will be in the journal entry. Two accounts are necessary to journalize a transaction.
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Prepare the journal entry. Debit one account and credit another, based on the transaction and relating general ledger accounts.
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Post the journal entry into the general ledger. Enter the date, brief description, account numbers and dollar amount into the general ledger.
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Tips & Warnings
Manual general ledgers require handwritten journal entries. Computerized accounting software requires individuals to input information into a standard format, per the software manufacturer's guidelines for entering journal entries.
