what is journal in accounts

In accounting, a journal is a detailed record of all financial transactions done by a business. It is used to reconcile accounts and is transferred to other accounting records, such as the general ledger. A journal entry typically includes the date of the transaction, which accounts were affected, and the dollar amounts, usually in a double-entry bookkeeping method. The purpose of a journal entry is to physically or digitally record every business transaction properly and accurately. If a transaction affects multiple accounts, the journal entry will detail that information as well. Journals can be physical records or digital documents stored as a book, a spreadsheet, or data entered into accounting software. The information recorded in a journal is used to reconcile accounts and is the basis for all financial reporting.