chapter 8: general journal

Question 1

explain the importance and uses of the general journal

Answer 1

important because it is used to record;
- openig entries
- bad debts
- drawings of inventory
- doantion of goods
- interest on overdue acounts
- purchase of non-current assets on credit

Question 2

explain opening entries

Answer 2

they are made as initial step when setting up a bookkeeping system of a new business or when starting a double entry system of bookkeeping in a business that was not previously keeping records according to double entry

comprises of;
- list of all assets and their values
- list of all liabilities and their values