Question 4

What is a journal? Give a specimen of journal showing at least five entries.

Answer

Journal is derived from the French word Jour, means daily records. In this book, transactions are recorded in order of their occurrence, i.e., in chronological order from the source document. It is also termed as the book of original entry and each transaction is termed as journal entry.



Performa of Journal
In the books of.....

Date Particulars L.F.

Debit
Amount
Rs

Credit
Amount
Rs

       

 

 

Date− Date of transaction is recorded in the order of their occurrence.

Particulars− Details of business transactions like, name of the parties involved and the name of related accounts, are recorded.

L.F.− Page number of ledger account when entry is posted.

Debit Amount− Amount of debit account is written.

Credit Amount− Amount of credit account is written.

Recording of a Journal Entry

 

 

Date

1)

Started business with cash Rs 1,00,000

April 01

2)

Open a bank account Rs 20,000

April 03

3)

Purchase goods for cash Rs 25,000

April 04

4)

Goods sold for cash Rs 30,000

April 05

5)

Goods sold to Mr. X Rs 2,000

April 06

                                                                     Books of Mr A

                                                                       Journal

Date

Particulars

L.F.

Debit Amount Rs

Credit Amount Rs

April1

Cash A/c

Dr.

 

1,00,000

 

 

 

To Capital A/c

 

 

 

1,00,000

 

(Started business with cash)

 

 

 

 

 

 

 

 

 

 

 

 

April 3

Bank A/c

Dr.

 

20,000

 

 

 

To Cash A/c

 

 

 

20,000

 

(Bank account opened with cash)

 

 

 

 

 

 

 

 

 

 

 

April 4

Purchase A/c

Dr.

 

25,000

 

 

 

To Cash

 

 

 

25,000

 

(Goods purchased for cash)

 

 

 

 

 

 

 

 

 

 

 

April 5

Cash A/c

Dr.

 

30,000

 

 

 

To Sales A/c

 

 

 

30,000

 

(Goods sold for cash)

 

 

 

 

 

 

 

 

 

 

 

April 6

Mr. X's A/c

Dr.

 

2,000

 

 

 

To Sales

 

 

 

2,000

 

(Goods sold to Mr. X on credit)

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

177,000

177,000

 

 

 

 

 

 

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