The presentation shows basic way of creating journal entries then a ledger and finally a trial balance record.

1. Book of Original Entry:
Journal

2. Introduction
 Journals are the books or primary entry.
 Entry means record of a transaction or an event in the journal.
 Journalizing is the first phase of the accounting process by
which transactions and events are recorded in the journal.

3. Meaning of Journal
 The word journal' has been derived from French word 'Jour', which
means 'diary.
 Journal is the book of original entry in which preliminary record of
both aspects of a business transaction are recorded in order in
which they arise, i.e., in chronological order.

4. Characteristics of journal
 A journal is a daily accounting record.
 It contains day-to-day transactions in chronological order.
 Brief explanation of each journal entry is appended to the journal
entry which is called 'Narration’.
 It is a basic book of original entries. After recording all the
transactions in journal these are subsequently recorded in ledger
which is the primary book of account.
 In journal, total of debit column and credit column always match and
agree.

5. Advantages of Journal
 It provides a date wise record of all the transactions.
 Both aspects of every transaction-Debit and Credit-are recorded,
hence it ensures the observance of double entry system.
 It provides all necessary information regarding a transaction.
 It is a permanent record of each transaction and thus helps in
auditing.
 Every journal entry bears narration which provides complete
knowledge about the transaction.

6. Proforma

7. Carried forward (C/F) or Brought down
(B/D)
 If all the transactions of journal require more than one page
for their record, total of amount column of journal is made on
each page at the end of the page and the words ‘carried
forward’ are recorded before this total amount.
 On the next page in the first line when this amount of total is
recorded and the words ‘Brought down’ or ‘Brought forward’
are recorded before the total amount.

8. Types of Journal entries
Journal entries can be divided into following two types on the basis of
recording transactions :
 Simple Journal Entry
 Compound Journal Entry

9. Rules of Journalization
Traditional Approach (English Method)
Modern Approach (American or Accounting equation
Method)

10. Traditional Approach (English Method)
 Nominal Accounts: debit all expenses and losses and credit all
revenues, incomes and gains.
 Personal Accounts: debit the receiver and credit the giver
 Real Accounts: debit what comes in and credit what goes out

11. Modern Approach (American or Accounting
equation Method)
Assets: Debit Increase, Credit decrease
Liabilities: Debit decrease, Credit increase
Capital: Debit decrease, Credit increase
Revenue: Debit decrease, Credit increase
Expenses: Debit increase, Credit decrease

12. Example