A general journal is the first book where a business records its transactions in the order they happen, each as an entry with equal debit and credit sides. In this general journal template you enter each journal entry once; it is checked for balance and posted by formulas to the ledger accounts and on to the trial balance. The example is a worked month for a trading company with nine entries.
Every entry's debits equal its credits, and the Entry difference column stays at zero. In the example total debits and total credits in the journal are SAR 264,750.00 each, with no line in an unbalanced entry.
How to use the general journal template
- Open the Accounts and trial balance sheet and enter your accounts: code, name and type.
- In the Journal, write each entry on two or more lines with the same number, pick the account from the list, and put the amount under Debit or Credit, never both.
- Watch the two side cards and the Entry difference column: a line turns red when its entry's debits and credits differ.
- Download the journal in Excel to keep working on it, or as a PDF to file and sign.
The General ledger and Trial balance tabs here show the result of your entries straight away, and each has its own page with a fuller template.
What goes in each column
| Column | What to enter |
|---|---|
| Date and entry no. | The transaction date and a running number repeated on every line of the same entry. |
| Account | From the list, as in the chart of accounts, so the entry posts to it. |
| Debit and credit | One amount per line, on its side only. |
| Description | What happened and the document number: "Goods bought on credit, invoice 1180". |
| Entry difference | Calculated: the entry's debits minus its credits, which must be zero. |
What is a general journal and why every entry starts there
The journal is a time-ordered record of every financial transaction before it is split across accounts, which is why it is called the book of original entry. It rests on double entry: each transaction affects at least two accounts, and what goes on the debit side equals what goes on the credit side. Entry no. 4 in the example is a cash sale of SAR 40,000 with SAR 6,000 VAT: Cash box debit 46,000, Sales credit 40,000, VAT credit 6,000.
Journal format and columns
The general journal is a table with date, entry number, account, debit, credit and description, the format used in this file. A columnar (multi-column) journal gives each frequently used account, such as cash, sales and purchases, its own debit and credit columns, adds them up at month end and posts the totals once; it suits a small business with few accounts and gets crowded as accounts grow. The description gives the reason for the transaction and the invoice or voucher number, so a reviewer can trace any line.
Recording and posting a journal entry
- Analyse the transaction: what came into the business and what went out?
- Pick the accounts affected and the side for each: assets and expenses increase on the debit side; liabilities, revenue and equity on the credit side.
- Write the entry with its date, number and description, and check that its difference is zero.
- Post each line to its account page in the general ledger.
Entry no. 3: goods bought on credit from Al Fajr Est. for SAR 30,000 plus SAR 4,500 VAT. Purchases debit 30,000, VAT debit 4,500, Suppliers credit 34,500. That is day-to-day bookkeeping: a document, then an entry, then posting.
From manual books to an accounting system
The core accounting books are the journal, the ledger and the inventory book, with subsidiary books (cash, sales, purchases) branching from them. A manual or Excel journal copes with a few dozen entries a month, then its limits show: an entry typed twice, an account spelled differently so it does not post, and long reconciliations at month end. In accounting software the entry is recorded from the invoice or voucher itself, and an unbalanced entry is rejected before it is saved.
Common mistakes
- Typing an account name by hand with a different spelling ("Bank" and "Bank acct"), so the entry does not post. Pick it from the list.
- Putting the debit and credit amounts on one line instead of two.
- Recording VAT-inclusive sales in the Sales account instead of splitting the VAT into its own account.
Regulatory and accounting notes
The Saudi Commercial Books Law requires traders to keep the books their business calls for, including the journal, and to retain them for the period the law sets; check the current text with the Ministry of Commerce. The 15% VAT in the example is for illustration; check it with ZATCA.
When the same entries repeat every day
Microtec accounting software is an ERP system for businesses in Saudi Arabia that brings sales, purchasing, inventory, finance and HR into one place.
Frequently asked questions
What is the difference between a journal and a ledger?
The journal records entries in date order; the ledger gathers what belongs to each account on its own page to show its balance. An entry goes into the journal first and is then posted to the ledger.
Can I edit a journal entry after recording it?
A recorded entry is not deleted or crossed out once posted. It is corrected with a new entry whose description cites the original entry number, so both the error and the fix stay visible to the auditor.
How do I correct a wrong journal entry?
Record a reversing entry for the same amount to cancel the wrong one, then record the correct entry. If only the amount was wrong, one entry for the difference in the same two accounts is enough.
What is a columnar journal?
A multi-column journal that gives each recurring account its own debit and credit columns, so each column total is posted to the ledger at month end instead of every line. It suits businesses with few accounts.