Common mistakes when journaling and how to avoid them
Posted: Mon Jan 20, 2025 5:13 am
What is the journal?
Features of the journal
Importance of journal in accounting
Legal obligations related to the journal
How do you make a journal?
Electronic diary: is it possible?
Conclusion
Frequently Asked Questions
What is the journal?
Also known as a general journal, the daily book is a mandatory accounting record in Spain. It records all the economic operations carried out by a company, a self-employed professional , an association or a public institution in chronological order.
It is one of the most important books within the General Accounting Plan , since it represents the basis for other records such as the general ledger . It also allows for greater control of all transactions carried out on a daily basis.
The responsibility for preparing the journal falls on any company or person who carries out economic activities, including businesses, associations and public institutions. In practice, accountants or accounting professionals carry out this task, although it can also be outsourced to accounting firms.
Difference between journal and ledger
Although both registers are essential to improve the financial management of a business, only the daily book is mandatory under Spanish law. The general ledger is only used as a complement.
The main difference is that the general journal records are made chronologically, indicating the accounts that it affects. The general ledger, on the other hand, records are divided by accounts, which can be accounts such as “banks”, “cash”, “sales”, etc.
Features of the journal
Each entry made in the journal is known as an accounting entry. Each of them must have the following characteristics:
The order of each transaction recorded in the journal list of canada cell phone number must be chronological and error-free.
Accounting entries are detailed, as they must provide enough information to understand the nature of the transaction without resorting to another document such as an invoice.
Each accounting entry must comply with the double-entry principle, that is, for each "debit" there must be a "credit" of the same amount.
All economic operations carried out must be included, without exceptions.
Format and structure
The accounting journal consists of a table with different vertical columns where the information of each operation is recorded. It must include the following:
Date : This specifies exactly when the transaction took place and allows you to identify patterns in economic activity.
Description : As we mentioned, a short description needs to be added to show the nature of the operation.
Affected accounts : every activity affects at least two accounts, which must be identified with a number and their respective name.
Debits : In this column, enter amounts that show an increase in assets, income or capital, as well as a decrease in liabilities.
Credits : on the other hand, the decrease in assets or expenses and the increase in liabilities are recorded here.
References : This is an optional column where you must include some reference to other accounting documents related to the transaction.
Importance of journal in accounting
You already know what the journal is, so you can easily understand its importance for accounting. Being the first accounting record, it becomes the basis for making the balance sheet , the income statement, the cash flow statement , the general ledger, etc.
hat the
Features of the journal
Importance of journal in accounting
Legal obligations related to the journal
How do you make a journal?
Electronic diary: is it possible?
Conclusion
Frequently Asked Questions
What is the journal?
Also known as a general journal, the daily book is a mandatory accounting record in Spain. It records all the economic operations carried out by a company, a self-employed professional , an association or a public institution in chronological order.
It is one of the most important books within the General Accounting Plan , since it represents the basis for other records such as the general ledger . It also allows for greater control of all transactions carried out on a daily basis.
The responsibility for preparing the journal falls on any company or person who carries out economic activities, including businesses, associations and public institutions. In practice, accountants or accounting professionals carry out this task, although it can also be outsourced to accounting firms.
Difference between journal and ledger
Although both registers are essential to improve the financial management of a business, only the daily book is mandatory under Spanish law. The general ledger is only used as a complement.
The main difference is that the general journal records are made chronologically, indicating the accounts that it affects. The general ledger, on the other hand, records are divided by accounts, which can be accounts such as “banks”, “cash”, “sales”, etc.
Features of the journal
Each entry made in the journal is known as an accounting entry. Each of them must have the following characteristics:
The order of each transaction recorded in the journal list of canada cell phone number must be chronological and error-free.
Accounting entries are detailed, as they must provide enough information to understand the nature of the transaction without resorting to another document such as an invoice.
Each accounting entry must comply with the double-entry principle, that is, for each "debit" there must be a "credit" of the same amount.
All economic operations carried out must be included, without exceptions.
Format and structure
The accounting journal consists of a table with different vertical columns where the information of each operation is recorded. It must include the following:
Date : This specifies exactly when the transaction took place and allows you to identify patterns in economic activity.
Description : As we mentioned, a short description needs to be added to show the nature of the operation.
Affected accounts : every activity affects at least two accounts, which must be identified with a number and their respective name.
Debits : In this column, enter amounts that show an increase in assets, income or capital, as well as a decrease in liabilities.
Credits : on the other hand, the decrease in assets or expenses and the increase in liabilities are recorded here.
References : This is an optional column where you must include some reference to other accounting documents related to the transaction.
Importance of journal in accounting
You already know what the journal is, so you can easily understand its importance for accounting. Being the first accounting record, it becomes the basis for making the balance sheet , the income statement, the cash flow statement , the general ledger, etc.
hat the