Chapter 36 - The General Journal

Question 1

What is the general journal used to record?

Answer 1

• The assets and liabilities of the firm at the start of the year
• The sale and purchase of fixed assets on credit by the firm
• Bad debts

Question 2

Is the general journal part of the double-entry bookkeeping system?

Answer 2

No

Question 3

What are bad debts?

Answer 3

Bad debts occur when one of our debtors does not pay what they owe

Question 4

If after trying every means of getting the money back off debtors the firm decides they will not be paid, they may decide to remove the debts from the account. What is this called?

Answer 4

Writing the amount off as bad debt