I have been struggling with this question for some time, What is the difference between a general journal and a general ledger?

Is the ledger comprised of the chart of accounts and their corresponding balances? Which if I am correct would run for ever...provided they are part of the four permanent accounts (IE: assets, liabilities, equity, retained earnings) and if not, a definition would be appreciated.

I do understand that the general journal is where a user will enter adjustments, direct transactions that effect an account (IE: reduction of an assset, etc.) and from what I have been told also keeps the summary entries for payroll (totals for the pay period) sales, etc.

If I am way off the mark please feel free to correct me.

I am trying to grasp this in terms of how software treats the transactions and how the various physical files are updated, closed, etc.

Tony2005

Very good question.
You are absolutely right gppays regarding general ledger and journal ledger. I guess you must be learning ERP software.

gppays

although its a total pain right now....

Sorry about the late response, unfortunately I have been hospitalized for a while and am just getting back on my feet

Jssmsa

Welcome back, Question, can you help please.

The ledger of Salizar Company at the end of the current year shows Accounts Receivable $110,000, Sales $840,000, and Sales Returns and Allowances $40,000.

Instructions
(a) If Allowance for Doubtful Accounts has a credit balance of $2,500 in the trial balance,
journalize the adjusting entry at December 31, assuming bad debts are expected to be (1)1% of net sales, and (2) 10% of accounts receivable.

CaptainForest

1)
1% of net sales
0.01 x (840,000-40,000) = 8,000
8,000 - 2,500 (already recorded) = 5,500

Dec 31
Dr. Bad Debt Expense 5,500
Cr. AFDA 5,500

2)
10% of AR
0.10 x 110,000 = 11,000
11,000 - 2,500 (already recorded) = 8,500

Dec 31
Dr. Bad Debt Expense 8,500
Cr. AFDA 8,500

dana78

planning, keeping, analyzing, and interpreting financial records.

dana78

what is planning keeping analyzing and interpreting financial records.

accounting clerks
accounting records
bookkeeping
accounting gaap

dana78

anything owned by the company

equity
liability
asset
capital
income

dana78

any thing owned by the company

equity
liability
asset
capital
income

dana78

jssma? sorry to hear that, I hope u feel better soon. the answer to the 1st question

planning keeping analyzing and interpreting financial records

-accounting clerks
-accounting records
-bookkeepers
-GAAP