The purpose of a journal is to record, on a day-to-day basis, all financial transactions as they occur in chronological sequence. Journals are "written up" from information recorded on source documents. The process of entering transactions into a journal is called journalising.
| Type of Journal | Source Document |
Cash Receipts Journal |
Records money we have received e.g. cash register print-outs, receipts |
Cash Payments Journal |
Records money we have paid out e.g. purchase receipts, cheque stubs |
Sales Journal |
Records sales we have made on credit |
Sales Returns Journal |
Records sales we have made on credit but which were subsequently returned by our customers |
Purchases Journal |
Records purchases we have made on credit |
Purchases Returns Journal |
Records purchases we have made on credit but which were subsequently returned to our suplliers |
Payroll register |
Records the hours that our employees have worked and how much we owe them. |
These days, most businesses take advantage of computer software for financial recording keeping. The entering of financial transactions on a day-to-day basis into Journals is done electronically. The most popular software used by small business is MYOB (Mind Your Own Business).
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