Module 3 : Recording Financial Transactions
Lecture 1 : Books of Account
 

Journal

The transactions are first recorded in the book to show which accounts are effected. This book is called as “Journal”.

Recording of transaction in journal is termed as journalizing the entries.

  • Entries are recorded chronologically to maintain the records in an orderly manner.
  • Journal entries are very important and form basis for all further records.
Specimen of Journal

Date

Particulars

L.F.

 Debit (Amt) Credit (Amt)
         

An entry in journal may appear as follows for the following transaction

1.11.2010  Goods sold for cash        of  5,000
5.11.2010  Cash deposited in        Bank 3,000

Journal Entries

Date

Particulars

L.F.

 Debit (Amt) Credit (Amt)

1.11. 2010

Cash A/c….Dr.

  5,000  
  To Sales A/c (Being Goods sold on cash)     5,000

5.11.2010

Bank A/c…Dr.

  3,000  
  To Cash A/c (Being cash deposited in bank)     3,000