Question -
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 |
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Date− Date of transaction is recorded in theorder 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 isposted.
Debit Amount− Amount of debit account is written.
Credit Amount− Amount of credit account is written.
Recording of a JournalEntry
| | | 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) | | | | |
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| 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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