What are Journals?
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).