What is the journal?

The daily book of a company is used to collect day after day all the data and activities carried out by the entity in terms of economic terms. Therefore, the concept of a journal is understood as a most useful way to record day-to-day operations.

The name received for each of the entries in the journal is the entry. Each entry is made up of credit entries and debit entries (depending on the account). But it must be ensured that the sum of the credit and debit entries.

How is the journal of a company

In addition, there are some journal book requirements that every business or business must meet. This is partly due to the fact that the journal is an obligation to be fulfilled by entrepreneurs as stipulated in art. 32 of the current Commercial Code. These mandatory parts of the journal are:

  • The specific date of the movements and transactions with their corresponding explanation
  • The accounts that are part of each movement as well as the amount of the transactions

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