The General Journal

All transactions that are not entered in the in the other journals are placed in the general journal.

1) Opening entries
2) Purchase of assets on credit
3) Depreciation of assets
4) Sale of asset on credit
5) Trading in of assets
6) Bad debts
7) Dishonored cheques
8) Bank loans, interest and charges
9) Correction of errors
10) Closing entries

Opening Entries

Opening entries are made when a business starts or at the beginning of every accounting period.

Depreciation of assets

An asset deteriorates with use and therefore the value of the asset decreases each year. Depreciation is
the term used to express the reduction in the book value of an asset due to wear and tear.

Trading in an asset

A new asset can be purchased by trading in an old asset and pay the difference in price for the new and
old asset.

Bad debts

These refers to amounts owed by the debtors that have not been paid for one reason or another.

Dishonored Cheques

Dishonored cheques are check that the bank refuse to pay. This can happen if the debtor does not have
enough money on their account.
 Format of the General Journal

Date Details Debit Credit

2020 Motor Vehicle 500
Aug 21 S King 500
(Bought a motor
vehicle on credit)