Journal

Financial transactions of the business which are recorded in detail is called a journal. These journal are created so that the reports can be created, such as the general ledger. There are two types of journal those are accrual method and cash basis method. The difference between the cash and accrual method is timing of when revenue and expenses are recognized. In cash method accounts for revenue is recognized only when the money is received and for expenses is recognized only when the money is paid out. In accrual method revenue is recognized when they are earned and expenses are owned when they occur.

New Journal

In the New Journal tab there are two segments; General Journal Details and Journal Item Details. When creating a journal both debit and credit should be equal.

General Journal Details

  1. Click on Journals and then New Journal
  2. Enter the date
  3. Select cash or accrual
  4. Enter reference number
  5. Press upload to upload a file

Journal Item Details

  1. Select account from the dropdown menu
  2. Enter description if needed
  3. Enter the amount in debit
  4. Select a another account from the dropdown menu
  5. Enter description if needed
  6. Enter the amount in credit
  7. Amount entered in debit and credit should be equal
  8. Press save to save the journal