JOURNAL | Readstall


12-12-18 Gudditi Naganjaneyulu 0 comment


The word journal has been derived from french word “journal” it means daily records .so journal is recording daily finance transactions in the books in a systematic  manner

Journal is defined as the books which containing a chronological order record of all daily financial transaction . it allows double entry system .the process of recording transaction in general is called journalising

Proforma of journal

Date Particulars Ledger folio number (lf no) Debit rs Credit rs

 Steps involved in journal entry

  • To ascertain nature of transactions I.e person ,assets and expenses  and loses & incomes and gains
  • Ascertain which account is applicable I.e personal A/C , Nominal  A/C
  • To ascertain which rule of debit and which rule of credit is applicable for eachA/C
  • To ascertain which account is debit .which account is credited
  • To write the date of transaction date column
  • To write the name of the account in date to be debited In nearest to the left hand hand side of column ,along with the observation of ‘Dr’ and the amount of debit is recorded debit column
  • In leave afew space towards right hand side of a particaular coumln start the word ‘To’.the amount of credit it mentioned in credit amount column
  • To write the narration I.e (brief description ) with the blockers in particular columnsonly
  • To draw asingle line in particular column for every journal entities
  • Compound journal entry
  • A compound journal entry to record single entry instead of recording several entries is called compound entry the situations are :
  • One account is debited and several A/C may be credited
  • Several A/C is debited and one A/C is credited
  • Several A/C may be and several a/c’ may be credited 

problem :

  1. From thefallowing data pass the necessary journal entries
  2. 01-Jan -15 business commenced with cash 10000 /-
  3. 03-Jan-15 goods purchased from x 5000/-
  4. 04-Jan-15 goods sold to mahesh 2000/-
  5. 07-Jan-15 cash sales 20000/-
  6. 25-Jan-15 rent paid  30000/-
  7. 30-Jan-15 salaries paid 2000/-
  8. 31-jan -15 interest received 1000/-
  9. 31-Jan-15 machinary purchases 5000/-
  10. 31-Jan-15 machinary sold for cash 3000/-

journal entries in the books 

Date Particulars Lf Debit rs Credit rs
1-jan-2015 Cash A/C                      -Dr       
           To  capital A/C
(being business commenced with cash )
  10000   10000
3-jan-2018 Purchases A/c             -Dr        
           To X A/c
(being purchased goods from X)
  5000   5000
4-jan-2015 Mahesh A/c                 -Dr        
           To sales A/c
(being goods sold to mahesh )
  2000   2000
7-jan-2015 Cash  A/c                      -Dr        
          To sales A/c
(being cash sales )  
  30000   30000
25-jan-2015 Rent A/c                      -Dr        
        To cash A/c
(being rent paid )
  30000   30000
30-jan-2015 Salaries A/c                -Dr        
        To interest A/C
(being salaries paid  )
  20000   20000
31-jan-2015 Cash A/c                     -Dr        
         To interst A/c
(being interest received )
  1000   1000
31-jan-2015 Machinary A/c         -Dr        
        To cash  A/c
(being purchsed machinary )
  5000 5000
31-jan-2015 Cash A/c                     -Dr        
        To machinary A/c
(being sold machinary on cash )
  3000 3000

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