General Journal Q&A

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on March 26, 2023

Test your knowledge of the general journal by answering the 10 short questions given below.

We strongly recommend attempting to answer each question yourself before checking the answers.

If you're unsure about the answer to any of these questions, read this website's article covering the general journal to learn more.

1. What is a journal?

2. What is a journal entry?

3. What is meant by narration of the journal entry?

4. What is a compound journal entry?

5. What does journalizing refer to?

6. How are trade discounts recorded in the journal?

7. Why is the journal called the book of original entry?

8. $950 in cash is received from Mr. Smith (an account receivable) in full settlement of his account of $1,000. How would you record this transaction in the general journal?

9. $480 in cash is paid to Mrs. Jackson (an account payable) in full settlement of her account of $500. How would you journalize this transaction?

10. What is the purpose of the posting reference column in the journal?

General Journal Q&A FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.