General Journal: A Comprehensive Guide


The General Journal is a comprehensive accounting record where all business transactions are initially recorded in chronological order. Each entry in the general journal includes:


Date of the transaction
Accounts affected
Amounts debited and credited
A brief description of the transaction


 
The General Journal is essential for BIR (Bureau of Internal Revenue) compliance as it ensures that all financial transactions are documented and can be easily referenced for audits and financial reporting.

How to Fill the General Journal for BIR Compliance
 
To ensure BIR compliance, the General Journal should be filled accurately and systematically. Here’s a step-by-step guide:

Use a Bound Journal Book:
Use a bound and paginated General Journal to prevent alterations and ensure integrity.

Chronological Entries:
Record transactions in the order they occur, without skipping lines. Each transaction must be entered on the date it happens.

Complete Information:
Include the date, account titles, amounts, and a brief description for each transaction.

Debit and Credit Entries:
For each transaction, ensure that the total debits equal the total credits.

Source Documentation:
Attach or reference source documents (e.g., invoices, receipts, vouchers) for every entry.

Narration:
Include a brief description or explanation (narration) for each transaction to clarify its nature.

Consistent Format:
Maintain a consistent format for entries to ensure clarity and uniformity.

Sample General Journal Entries

Here’s an example of how to record transactions in the General Journal for BIR compliance, covering transactions for a fictional business, PBC, for the month of January 2024:

Date Account Titles and Explanation Ref Debit (PHP) Credit (PHP)
Jan 05 Inventory INV-01 500,000  
  Accounts Payable     500,000
  (Purchased inventory on account from Supplier A)      
Jan 10 Prepaid Expenses PRE-01 50,000  
  Cash     50,000
  (Paid insurance premium for the year)      
Jan 15 Accounts Receivable AR-01 1,000,000  
  Sales Revenue     1,000,000
  (Sold goods on account to Customer A)      
Jan 20 Rent Expense RENT-01 50,000  
  Cash     50,000
  (Paid January rent)      
Jan 25 Accounts Receivable AR-02 400,000  
  Sales Revenue     400,000
  (Sold goods on account to Customer B)      


Key Points for BIR Compliance:


Accuracy:
Ensure all figures are accurate and match the supporting documents.

Timeliness:
Record transactions as they occur to avoid delays and ensure the journal is up-to-date.

Completeness:
Do not leave blank spaces or lines between entries to prevent unauthorized insertions.

Legibility:
Make sure all entries are clear and legible, without any erasures. Corrections should be done properly with a single line strike-through and initialed by the responsible person.

Supporting Documents:
Keep all related documents (invoices, receipts, etc.) organized and easily accessible for audit purposes.

By following these guidelines, the General Journal will meet BIR compliance standards and provide a reliable record of all business transactions.

29 Comments

  1. Hi po. Mas maganda po bang ipatatak itong books sa BIR o yung sabi nila na ORUS na lang? Ano po maipapayo nyo? Salamat po!

    ReplyDelete
    Replies
    1. Either way pwede naman pero mas convenient kung mag-ORUS ka kaysa magbyahe at pumila pa sa RDO.

      Delete
  2. Pwede ko ba makuha SOCMED mo kasi marami po akong tanong.

    ReplyDelete
    Replies
    1. I beg your pardon but I don't share too much info.

      Delete
  3. Nakita ko na sir ang Instagram mo. Ang gwapo mo pa pala at mayaman pa. Buti po at masipag po kayo mag-blog? Bakit po wala photo yung gamit nyong Facebook sa BIR group gayong ang gwapo mo naman?

    ReplyDelete
    Replies
    1. Huwag ka maingay. Hindi ako mayaman. Kumakain din akong sardinas, tuyo at bagoong alamang. Sumasakay din akong e-jeep at tricycle.

      Delete
    2. Ano Instagram niya? Pahingi din ako.

      Delete
  4. Sir taga saan po kayo?

    ReplyDelete
    Replies
    1. I beg your pardon but I can't divulge my personal info.

      Delete
  5. Sir ito pong mga books at ballpen, mga shop nyo po ba sa Lazada yan? Sarili nyo po ba?

    ReplyDelete
    Replies
    1. Nope. I bought mine from these shops that is why I can recommend them to you.

      Delete
  6. Bro Win, baka kilala mo pa ako, si Tim. Katabing unit mo sa Eight Courtyards Condominium sa Yishun, Singapore. Kainuman mo sa Jacuzzi area. Di kita ma-add sa Facebook mo. May negosyo si Misis at napunta nga kami dito sa blog mo. Ayos na ayos. Madaling intindihin.

    ReplyDelete
    Replies
    1. Oh bro! Syempre naman! Long time no see! Nasa PH ka? Chat kita sa FB!

      Delete
  7. Ang yaman mo po pala, naka condo sa Singapore pa na one of the most expensive cities in the world to live in. Pero bago ako matulog ay may tanong ako. Bawal daw ba isulat ang mga nagastos sa bago i-register ang mga books? Sana po masagot. Salamat po!

    ReplyDelete
    Replies
    1. Rephrasing your Question. Can we write transactions prior to registering our Books of Accounts? No, according to BIR regulations, you cannot write transactions prior to registering your Books of Accounts. Registering your Books of Accounts with the BIR signifies the official commencement of your business's record-keeping obligations. Transactions that occur before the registration of your Books of Accounts should not be recorded in those books. I'll blog more about it later.

      Delete
    2. For newly registered taxpayer can write to their manual book of account even if the book is not yet registered. For existing taxpayers or subsequent registration of manual books, they cannot write to new books if not yet registered. Please refer to RMC No. 3-2023.
      Or maybe his question is like this, "Can we write in the book those expenses that occurred before registration with the BIR?"

      Delete
  8. Sir pwede pa video? Salamat po

    ReplyDelete
    Replies
    1. Hala! Anong pinapavideo mo sa kanyan? Share mo sakin ah!

      Delete
    2. ayaw ko nga hahaha

      Delete
  9. Sir taga BGC ka ba?

    ReplyDelete
    Replies
    1. Mayaman talaga kung taga BGC si sir. Pero sa lahat ng mayaman na kakilala ko siya yung pinakamasipag magbigay tulong at libre pa. Ang sarap siguro tropahin o jowain ni sir. Single ka pa ba sir?

      Delete
  10. Hindi ako mayaman. Kumakain din akong sardinas, tuyo at bagoong alamang. Sumasakay din akong e-jeep at tricycle.

    ReplyDelete
  11. Thank you po sir marami akong natitinan sa blog mo. More power po

    ReplyDelete
  12. Sinu-sino ang mga naTITInan mo dito? 🤣

    ReplyDelete
  13. Mga pasaway kayo kung anu-ano mga comments nyo. 😢

    ReplyDelete
    Replies
    1. Kasi naman sir yung isa gusto kayo maka one on one, tapos may humihingi ng video nyo at ito naman isa daming naTITI sa inyo.

      Delete
  14. Sir maglagay po kayo Donation Box para makapag-donate kami kahit papaano. Malaking tulong po sa amin itong blog nyo. Maraming salamat po talaga.

    ReplyDelete
    Replies
    1. Oo nga dapat lang kasi ang laking tulong nitong blog ni sir!

      Delete
  15. Thank you sir Edwin. Nakita ko po sagot mo sa BIR group. Apakalaking tulong nito sakin. Refer ko po sa iba. Mab uhay po kau.

    ReplyDelete

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