Bookkeeping: Journals, Subsidiary Ledgers and General Ledger

A core premise of accounting deals with the concept of journals, ledgers, and journal entries. The need for various journals or ledgers may depend on the size and structure of the organization. Bookkeepers must understand how each tool is developed and how they interrelate.

An accounting journal is a detailed account of all the financial transactions of a business. It is also known as the book of original entry (the first place where transactions are recorded). An accounting ledger is an account or record used to store bookkeeping entries for balance sheet and income statement transactions. Accounting ledger journal entries can include accounts like cash, accounts receivable, investments, inventory, accounts payable, accrued expenses, and customer deposits. The term accounting ledger is often used interchangeably with accounting sub-ledgers or the general ledger. A general ledger contains all the accounts for recording transactions relating to a company’s assets, liabilities, owners’ equity, revenue, and expenses. The general ledger is where posting to the accounts occurs.

This course examines each of these accounting tools and explains their protocols and how they are integral to the accounting process.

Whether you are a business owner or want to develop the skill of bookkeeping to begin a career, there are critical accounting and bookkeeping concepts that are important to learn.

This course has been developed by a CPA who has both small and large business accounting experience and background.

NOTE: This course is one of a series of courses developed for the Professional Bookkeeping Certification program on Illumeo. The full curriculum of courses will provide you with the ultimate foundation for a career as a bookkeeper.

Note: Information within this course comes from readily available public domain documents and is utilized by the trainer as a supplement for relaying the course content.