journalizing transactions

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Topic :- Journalising Transactions
Presented To
:-
Presented
By :-Dr. Rajeshwari Trivedi
( Assistant Professor )
( Dept. Of Computer Science )
Akshaya Parida
B. Sc.(I.T.) 2nd yr.

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Journal :-
 Journal is a book that records all daily transactions in the
chronological order of date .
 It is the book in which the transactions are recorded first of
all under the double entry system . Thus , journal is the books ,
of original record .
Proforma of journal
Date Particulars L.F. Debit (Rs) Credit (Rs)

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Rules Of Debit And Credit :-
All the business transactions have been classified
into three categories:-
i. Transactions relating to persons.
ii. Transactions relating to properties and assets.
iii.Transactions relating to incomes and expenses.

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The transactions are recorded are classified

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1. Personal
accounts :-Personal accounts include the accounts of persons
with whom the business deals.
Types of personal accounts :-
A. Natural Personal Accounts :-
 It includes accounts of persons such as Mohan's account ,
Sohan ‘s account .
B. Artificial Personal Accounts :-
 It includes accounts of organizations such as accounts of
Company , Club , co-operative society and Government etc.
C. Representative Personal Accounts:-
 It includes accounts that represent a group of persons such
as outstanding salaries account for employees .
DEBIT THE RECEIVER
CREDIT THE GIVER

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2. Real accounts:-
It represent accounts of properties and assets .
Types of real accounts :-
A. Tangible Real Accounts:-
 It represents accounts of thing that can be touched or
measured , such as cash account , building , furniture ,
stock account .
B. Intangible real accounts:-
 It represents accounts of things that can’t be touched ,
such as patent account , goodwill account .
DEBIT WHAT COMES IN
CREDIT WHAT GOES OUT

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Nominal Accounts :-
 It represents accounts for incomes gains ,
expenses and losses .
Example:- Rent account , Insurance account and
Dividends account .
DEBIT ALL EXPENSES AND LOSSES
CREDIT ALL INNCOMES AND GAINS

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Example:-

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Classification of goods account:-
Goods are the objects purchased by the business for
resale .
Goods accounts classified into 4 categories :-
i. Purchases account
ii.Sales account
iii.Purchases return account
iv.Sales return account

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1. Purchase Account:-
It records all purchases of goods . Goods “ come in “ on
purchasing of goods and therefore , the account is debited on
purchase of goods .
2. Sales Account:-
It records the sales of goods and the account is credited on selling
the goods .
3. Purchases Returns Account:-
It records returns of goods purchased . The goods “ go out “ on
returning of goods to the suppliers and therefore , the account is
credited on returning goods purchased .
4. Sales Returns Account:-
It records the return of goods sold . The goods “ come in “ and
therefore , the sales returns account is debited on return goods
.

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Compound Journal Entry:-
A journal entry recording more than one business
transaction .
It can be following three ways:
i. One particular account may be debited while
several other accounts may be credited.
ii. One particular account may be credited while
several other accounts may be debited .
iii. Several accounts may be debited and several
other accounts may also be credited.

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Example

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Opening entry:-
A journal entry passed for bringing forward balances of assets and
liabilities of the previous period to the current period .

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Thank you