Journal is a term in accounting for the place where all accounting records are chronologically recorded. Each organization (entity) keeps one or more journals.
Journal in practice: It takes a form of written books or it is secured by the accounting software. In the journal there are all the basic information about accounting document (date, document identification, a description of the operation, amount and account (debit / credit). If the entity keeps one journal, then it must record all accounting documents. However, most of the organizations keep more special journals, so it is clearer. For example:
- Cash journal - for overview on cash flow
- Sales Journal
- Purchase Journal
- Ledger - it must be always