The first step to start with Financial accounting.

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4. It keeps a chronological record of all transactions
i.e., arranged according to the order of
occurrence.
The Journal gives a complete picture of each
business transaction and thus , maintains the
identity of the transaction.
Every entry in the Journal is followed with
narration which describes briefly the true nature
and context of the transaction.
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7. Invoices
,
CASH
Receipt,
Cheque,
CASH
Memo,
etc…..
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12. DATE PARTICULARS LEDGER DEBIT CREDIT
FOLIO AMOUNT AMOUNT
2011
Nov.21 Machinery a/c Dr. 15 50,000
To Cash a/c 50,000
(Being machinery purchased for
cash)
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18. Debit Credit
Date Particulars L.F. amount amount
1) Advertisement a/c Dr. 25 5,000
To Purchases a/c 5,000
(Being goods given as charity) .
2) Goods lost by fire a/c Dr. 26 8,000
To Purchases a/c 8,000
(Being goods destroyed by fire) .
3) Machinery a/c Dr. 27 500
To Cash a/c 500
(Being wages on installation of
machinery paid) .
4) Cash a/c Dr. 28 9,000
To Sales a/c 9,000
(Being sale of goods worth Rs.10,000
less 10% trade discount) .
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