Answer
Companies initially record transactions in chronological order. Thus, the journal is referred to as the book of original entry. For each transaction, the journal shows the debit and credit effects on specific accounts.
Companies may use various kinds of journals, but every company has the most basic form of journal, a general journal.
Example
| General Journal | ||||
| Date | Account titles and Explanation | Ref. | Debit | Credit |
| 2017 Jan-1 | Equipment Cash Accounts Payable (Purchased computer equipment for cash with balance on account) | $10,000 | $3,000 $7,000 | |