–Ankit Lal karn, ACW Accounts at Edumarz
We have already learnt about debit and credit.
We also know how debit and credit affect accounts of transactions.
However practically, transactions are not directly recorded in accounts.
the journal is the book in which transactions are recorded for the first time,
We need a source document to record transactions in the book of original entries.
This process provides a complete record of every entry entered in books throughout the year.
After giving debit and credit adjustments to entries we can transfer them to individual accounts.
The process by which these journal entries are transferred into individual accounts (ledger) is called posting.
The journal is subcategorized as under:-
The journal
Cashbook
Other day books
a) Purchase book
b) Sales book
c) Purchase return book
d) Sales return book
e) Bill receivable book
f) Bill payable book
Journal is a basic book of original entry. Transactions are recorded in serial order in the journal. After that transactions from journal are posted in the ledger.
Format of journal:-
DATE PARTICULAR L.F DEBIT(RS) CREDIT(RS)
DATE:- date on which transaction is recorded
PARTICULAR:- account to be debited and credited is written.
For example – cash A/c dr
To sales A/c
L.F:- it means ledger folio
Amount:- amount debited must be equal to the amount credited.