The book of original entry where all financial transactions are first recorded as journal entries before being posted to the general ledger.
The General Journal is the chronological record of all financial transactions in their raw form — called journal entries. Every transaction is first written (or entered) into the journal with its date, accounts affected, amounts debited and credited, and a brief description. These entries are then "posted" (transferred) to the appropriate accounts in the General Ledger.
In manual bookkeeping, the General Journal is a physical bound book registered with the BIR. In computerized accounting systems, the journal is maintained automatically — but the BIR still requires that the underlying journal entry data be accessible and auditable.
In practice: On March 5, Puso ng Bayan Restaurant pays ₱15,000 in cash to its vegetable supplier. The General Journal entry: Date: March 5 | Debit: Purchases/COGS ₱15,000 | Credit: Cash ₱15,000 | Description: "Payment to Verde Farms – vegetable supplies per OR No. 4521." This entry is then posted to both the Purchases account and the Cash account in the General Ledger.
Why it matters: The General Journal is a legal record in the Philippines — it must be registered with the BIR before use and maintained for 10 years. For businesses running computerized accounting, this means the journal data in your accounting software must be exportable and auditable. The ability to trace any GL balance back through journal entries to source documents is the foundation of a BIR-compliant accounting system.
"General Journal" should not be confused with special journals (like the Cash Receipts Journal or Cash Disbursements Journal), which are subsidiary books for high-volume routine transactions. The General Journal handles non-routine entries — adjustments, depreciation, corrections.