Using the general journal

You can use the general journal to make direct debit and credit entries to your general ledger accounts. To post transactions using the general journal, you must be familiar with the double-entry accounting system of debits and credits.

A debit is an entry that represents the increase of an asset or expense, or the reduction of a liability, revenue or equity. A credit is an entry that represents the reduction of an asset or expense or the increase of a liability, revenue or equity. The debit column total must equal the credit column total before you can record a general journal transaction.

The general journal can only post adjusting entries since it can’t:

• post to or affect any subsidiary ledgers, such as receivables or payables
• automatically update inventory accounts
• separate and record the business and personal percentage amounts for an account

To enter a general journal transaction:

1. Select General Journal from the Transactions menu. The general journal dialogue box appears.
2. Enter a Reference to identify the transaction throughout AgExpert Analyst. For example, use a cheque, invoice or receipt number. You may also want to use the adjustment number given by your accountant.
3. Enter the transaction Date or click the arrow and select it from the calendar.
4. Enter a transaction Description or click the arrow to select an existing description from the drop-down menu.
5. Enter an Account number or select an account from the list. You can select any postable account in the chart of accounts.
6. Enter a Memo for the current detail line.
7. Enter the Quantity of units you've acquired or disposed of. If you’re adjusting an inventory account, you must enter a quantity.
8. Enter an amount in either the Debit or Credit field. You can’t enter an amount in both fields. The following table shows the effect of debiting or crediting an account:
9. Press Tab, the down arrow key or Enter on your keyboard, or click  to add a detail line. Click  to delete the detail line.

Last updated on August 27, 2013 by FCC AgExpert