Barrie Bookkeepers Inc

What are journals and ledgers?


Before computers, when accounting records were maintained manually, a common system was used to organize all of the entries. A journal was sometimes used to record the details of an entry such as cheques or sales invoices. One book or journal would be used to record each type of record, so there would be a journal for cheques and a journal for sales invoices. Over time the information would accumulate. Since there was no cut and paste, the entries would remain in the same sequence forever. These books were called the Journals. To track the monthly totals of these journals, a separate book was used. This book would have one page for each account. The pages were called Ledgers and the book they were kept in was called the General Ledger.