Meaning of journal
Journal is a book in which the transactions are recorded in chronological order according to the double-entry system. It is also known as books of original entries. In this book, each transaction is classified into debit and credit.
It is a day-to-day record of transactions
It is prepared as the base for the preparation of a ledger
Importance of Journal
- 1. It provides a day-to-day record of all transactions
- 2. It uses the rules of debit & credit according to the double-entry system.
- 3. Every transaction firstly recorded in a journal and then posted in various ledger accounts
- 4. It is easy to prepare the ledger
Objectives of Journal
- 1. To keep a record of business transactions
- 2. To simplify the ledger
- 3. To record the debit & credit aspects of a transaction
- 4. To show the position of the account
“Journalizing is a process of recording of a transaction in a journal“
Other class 11 notes
Double entry Bookkeeping System
Specimen of Journal
- 1. Date column: In this column, dates of transactions are mentioned. Like 1 January 2006
- 2. Particular’s column: In this column, the names of two accounts are mentioned and one account is debited and another account is credited. Credit is denoted by “To”. Then after brief descriptions of the transaction are written which is known as narration.
- 3. Ledger folio number column: In this column, page no. of the ledger is mentioned
- 4. Debit amount column: In this column, the amount to be debited is recorded
- 5. Credit column: In this column, the amount to be credited is recorded
Steps in Journalizing:
- Ascertain accounts are involved
- Ascertain what types of accounts are involved
- Think about the rules for debit & credit
- Journalize
- Brief description (Narration)
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