The journal is a book of original entry that chronologically records all business transactions with details. Each entry maintains the identity of the transaction and includes a brief narrative description. The journal contains debit and credit columns with date, particulars, ledger folio references, and amounts. Sample journal entries are provided that record the purchase of machinery for cash, goods given as charity, goods destroyed by fire, payment of wages for machinery installation, and the sale of goods with a trade discount applied.

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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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