Question

What is a journal? Give a specimen of a journal showing at least five entries.

Answer 1

A journal is the book of original entry which records transactions as they take place, such an entry into the journal must contain a source document. Maintaining a journal ensures all transactions are recorded and in one place and debit and credit for each transaction is linked properly. A journal consists of the following sections.

Date− Transaction date based on when transaction has taken place.

Particulars− Details of transaction recorded.

L.F.− Page number of ledger where entry is posted.

Debit Amount− Debited amount as per transaction.

Credit Amount− Credit amount as per transaction

$\begin{array}{cc}\text{Date}& \text{Details}\\ \text{01.5.2019}& \text{Business started with cash Rs.1,00,000}\\ \text{01.5.2019}& \text{Goods purchased from Harish for Rs.20,000}\\ \text{01.5.2019}& \text{Stationary purchased for cash for Rs.2,200}\\ \text{02.5.2019}& \text{Opened a bank account with SBI for Rs. 30,000}\\ \text{02.5.2019}& \text{Goods sold to for Rs.10,000}\\ \text{03.5.2019}& \text{Received a cheque of Rs.10,000 from Sachin}\end{array}$