Journal - accounting process, Accounting Standards

Journal is an every days record of business transactions, this is also termed a 'Day Book' and is used for recording every day transactions in the order wherein they arise.  It is a book of prime entry (also termed as book of original entry) because all transactions are recorded first in this book.  He process of recording (transaction in the journal is termed as 'Journalizing' and the entries made in this book are termed as Journal-Entries. The Performa of Journal is specified in figure. 

The Journal is separated in five columns. The primary column is utilized for writing the date of the transaction. This is customary to write the year on the top of the column merely once and then in the subsequent line the month and date are written.

The second column termed as 'Particulars' column, the names of the two accounts affected through the transaction are to be recorded into this column. The identity of the account to be debited is written initially. The abbreviation Dr. for debit is also written against the identity of the account to be debited. This is written on similar line extremely close to the L. F. column. In the subsequent line, the identity of the account to be credited is written. This is always preceded through the word 'To'. This is not essential to write   against the name of the account to be credited. In the subsequent line, a brief explanation of the transaction is also specified inside brackets. This is termed as 'Narration'. After writing the narration a line is drawn in the particulars column to divide one entry from another.

The third column L.F. that is Ledger Folio is meant for writing the page number of the ledger where the related account appears. Such column is filled at the time of posting in the ledger. The fourth and fifth columns are meant for recording the amounts along with that the two accounts have been affected, the amount to be debited is entered in the debit amount column against the identity of the account debited and the amount to be credited is entered in the credit amount column against the identity of the account credited. Both the amounts will all the time.  Let us acquire a transaction and notice how this will be recorded in the Journal. Purchased Machinery for   on May 1, 1988 year. In this transaction, the two accounts influenced are Machinery Account and Cash Account.

Posted Date: 4/3/2013 6:12:58 AM | Location : United States

Related Discussions:- Journal - accounting process, Assignment Help, Ask Question on Journal - accounting process, Get Answer, Expert's Help, Journal - accounting process Discussions

Write discussion on Journal - accounting process
Your posts are moderated
Related Questions
Dear Sir, I am an accountant working in a company with limited liability (WLL), one of the partners (A) will withdraw from our company. One of the existing partner (B) of the comp

Within today's international business environment, there has been a great deal of discussion about the convergence of United States accounting standards (also known as GAAP), with

describe why a high stock turnover is considered to be a good thing

Q. Financial consequences of business decisions? When nowadays college students are polled about their long-term career choice an astonishingly large number respond that they w

3. Solve the following Linear Programming Problem using Simple method. Maximize Z= 3x1 + 2X2 Subject to the constraints: X1+ X2 = 4 X1 - X2 = 2 X1, X2 = 0

If I sold aan asset before its matured perid what will be it''s Depreciation schedule?

The book of Deven Verma could not be tallied. The accountant transferred the difference of Rs. 1,270 in the suspense account on the debit side. The following mistakes were found la

are exploration costs assets to Mining companies?

AB Limited is a manufacturing entity that runs a number of operations including a bottling plant that bottles carbonated soft drinks. AB has been developing a new bottling process

Government Accountability Office (GAO) - Accounting and auditing office of the United States government. An independent agency which reviews federal financial transactions and repo