Purposes of General Journal, General Ledger, Trial Balance, and Financial Statements

This article discusses the purposes of the General Journal, General Ledger, Trial Balance, and Financial Statements in accounting. It explains how these elements are interconnected and their significance in financial reporting. The article also provides an example of the preparation of general entries and ledgers.

Accounting

Contents
MAIN BODY..............................................................................................................................................3
REFRENCES............................................................................................................................................11

MAIN BODY
1. Describe the purposes of the General Journal, General Ledger, Trial Balance, and Financial
Statements.
General Journal: General Journal is really a daybook or notebook used for reporting
transactions relevant to change applications, stock release, accounting mistakes etc. This primary
entrance book's root records are journal coupon, a summary of management papers, and bank
statements (Halibozek and Kovacich, 2017). That is where bookkeeping dual transactions are
registered by debiting certain or more accounts as well as crediting other accounts of the same
cumulative number. A journal is a list of monetary transactions by date in bookkeeping.
General Ledger: A general ledger is a document or file used by accountants to monitor all
records related to it. The general ledger records five popular aspects in accounting: properties,
obligations, property of the shareholders, sales, and expenditures. The general ledger also
systems and security rows for details such as summary of purchases, year and security code.
Trial Balance: A trial balance is indeed a record keeping workbook where the sum in all
ledgers is collected into equivalent columns in debit and credit transaction numbers. An
organization annually schedules a trial balance, typically after every monitoring period finishes.
The basic aim of creating a trial balance is to guarantee the regarding competence records in a
corporation's bookkeeping method.
Financial Statements: These are the documents in writing which convey a firm's capital
practices and financial reports. Annual results are also investigated to maintain accuracy
however for accounting, financing, or expenditure reasons by policy departments, accountants,
corporations, etc.
They all are interconnected with each other as journal entries are recorded to prepare
ledger account and the respective balance is used to document trail balance for the year.
Furthermore, balance of trail balance is being used to prepare the income statement which
enables to extract the profit margin for particular year (Hastings, 2015).

2. Preparation of general entries and ledgers.
Date Particulars Debit (In $) Credit (In $)
July 1 Cash a/c DR
To share capital a/c
18000
18000
July 1 Truck a/c DR
To cash a/c
To bank truck loan a/c
11000
4000
7000
July 3 Cleaning supplies a/c DR
To bank a/c
900
900
July 5 Insurance policy a/c DR
To cash a/c
1800
1800
July
12
Cleaning service a/c DR
To customer a/c
4800
4800
July
18
Bank truck loan a/c DR
To cash a/c
1500
1500
July
18
Cleaning service a/c DR
To capital a/c
500
500
July
20
Salary a/c DR
To cash a/c
1700
1700
July
21
Cash a/c DR
To cleaning service a/c
1200
1200
July
25
Cleaning service a/c DR
To customer a/c
1900
1900
July
31
Truck maintenance a/c DR
To cash a/c
500
500
July
31
Dividend a/c DR
To cash a/c
800
800

General ledger:
DR Cash a/c
CR
Date Particulars J
F
Amount Date Particulars JF Amount
July
1
To share capital a/c 18000 July 1 By truck a/c 4000
July 5 By Insurance policy a/c 1800
July
18
By Bank truck loan a/c 1500
July
20
By salary a/c 1700
July
31
By truck maintenance a/c 500
July
31
By dividend a/c 800
July
31
By balance c/d 7700

18000 1800
DR Share capital a/c
CR
Date Particulars J
F
Amount Date Particulars JF Amount
July
31
To balance c/d 18000 July 1 By cash a/c 18000
18000 18000
DR Truck a/c
CR
Date Particulars J
F
Amount Date Particulars JF Amount
July
1
To cash a/c 4000 July
31
By balance c/d 8000
July
1
To bank truck loan
a/c
4000
8000 8000
DR Bank Truck loan a/c
CR
Date Particulars J
F
Amount Date Particulars JF Amount
July
18
To cash 1500 July 1 By truck a/c 7000
July
31
To balance c/d 5500

7000 7000
DR Cleaning supplies a/c
CR
Date Particulars J
F
Amount Date Particulars JF Amount
July 3 To bank a/c 900 July
31
By balance c/d 900
900 900
DR Bank a/c CR
Date Particulars J
F
Amount Date Particulars JF Amount
July
31
To balance c/d 900 July 3 By cleaning supplies a/c 900
900 900
DR Insurance policy a/c
CR
Date Particulars J
F
Amount Date Particulars JF Amount
July 5 To cash a/c 1800 July
31
By balance c/d 1800

1800 1800
DR Cleaning service a/c
CR
Date Particulars J
F
Amount Date Particulars JF Amount
July
12
To customer a/c 4800 July
21
By cash a/c 1200
July
18
To capital 500 By balance c/d 6000
July
25
To customer a/c 1900
7200 7200
DR Customer a/c
CR
Date Particulars J
F
Amount Date Particulars JF Amount
July
31
To balance c/d 6700 July
12
By cleaning service a/c 4800
July
25
By cleaning service a/c 1900
6700 6700
DR Salary a/c CR
Date Particulars J Amount Date Particulars JF Amount

F
July
20
To cash a/c 1700 July
31
By balance c/d 1700
1700 1700
DR Truck maintenance a/c
CR
Date Particulars J
F
Amount Date Particulars JF Amount
July
31
To cash 500 July
31
By balance c/d 500
500 500
DR Dividend a/c CR
Date Particulars J
F
Amount Date Particulars JF Amount
July
31
To cash 800 July
31
By balance c/d 800
800 800
3. Important financial statement
The main elements of the accounting are revenue tax, balance sheet or cash flow analysis.
Such measures are meant to be viewed world in general, to give a full view of a company's

financial position and performance. One argument may be created for every one of the most
relevant financial statements, but the final solution relies on the customers' requirements.
For most external people or stakeholder, the most relevant accounting document is undoubtedly
the income statement, because it shows a business' capacity to make a profit. Additionally, the
details reported on the declaration of profit are also in fairly current dollars, and therefore
provides a fair degree of accuracy. However, it will not disclose the sum of financial assets takes
to create an income, so the figures do not automatically correlate to the cash flows the company
receives. In fact, the precision of this paper may be questioned as the financial cash base is used
(Haynes, B., Nunnington and Eccles, 2017). Therefore, the income statement can sometimes be
ambiguous as viewed on its own.
The total sum debited as well as the actual number payable will also be identical, thereby
guaranteeing that the financial balance is maintained. In general ledger, receipts from general
journals are reported and then amounts are measured and then moved from the accounting
system to such a trial balance.

REFRENCES
Books and Journals
Halibozek, E. and Kovacich, G. L., 2017. The manager's handbook for corporate security:
establishing and managing a successful assets protection program. Butterworth-
Heinemann.
Hastings, N. A. J., 2015. Physical asset management: With an introduction to ISO55000.
Springer.
Haynes, B., Nunnington, N. and Eccles, T., 2017. Corporate real estate asset management:
strategy and implementation. Taylor & Francis.