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Q. What are simple journal entries?
To understand the cross-indexing and posting process trace the entries from the general journal to the general ledger. The ledgers accounts require not contain explanations of all the entries since any needed explanations can be obtained from the general journal.
Remember that no dollar signs appear in journals or ledgers. While amounts are in even dollar amounts accountants leave the cents column blank or use zeros or a dash. When they utilize lined accounting work papers, decimal points or commas are not needed to record an amount. When they utilize unlined paper they add both commas and decimal points.
The three-column general ledger accounts of Micro Train Company after the journal entries have been posted. Each ledger account would show on a separate page in the ledger. Trace the postings as of the general journal to the general ledger to make sure you know how to post journal entries.
All the journal entries exemplify so far have involved one debit and one credit these journal entries are called as simple journal entries. Numerous business transactions, but affect more than two accounts. The journal entry for these transactions engages more than one debit and/or credit. Such journal entries are called as compound journal entries.
Received $170,000 cash from Electronic Arts, Inc. for service revenue earned in January.
“Ledger is said to be the principal book entry and the transactions can even be directly entered into the ledger account.” Elaborate and explain why journal is necessary.
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