Question

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

Answer 1

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

Date− Date of transaction is recorded in the order 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 is posted.

Debit Amount− Amount of debit account is written.

Credit Amount− Amount of credit account is written.

Recording of a Journal Entry

		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)
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