The document provides examples of journal entries for various business transactions for multiple individuals over different periods of time. It begins by outlining the purpose and components of a journal, including the meaning, importance, structure, and journalizing process. It then provides 6 examples with numerous transactions each month to journalize, including purchasing/selling goods and assets, payments/receipts, deposits/withdrawals, wages, and introducing/withdrawing capital. The goal is to practice recording business transactions in journal entry format.

1. Topic: 4. Journal
By Mr. Srinivas M.

2. Chapter Objectives:
 After completion of this chapter you should be
conversant with:
 Sources of documents
 Meaning and Importance of Journal
 Utility of journal.
 Specimen of Journal
 How to journalize the transactions
 Exercises

3. Sources of documents
 Introduction
 Different sources of documents:
1) Cash Memo
2) Invoice or Bill
3) Receipt
4) Pay in slip
5) Cheque
6) Debit or Credit Note

4. What do you know about Journal ?

5. Meaning of Journal
 The word ‘Journal’ derived from French word ‘Jour’
which means a day.
 Therefore Journal means a ‘daily record’
 Journal is a book of original entry or first entry or
primary entry.

6. Definition of Journal
 Definition: “ A journal is a book, employed to classify
or sort out transactions in a convenient for their
subsequent entry in the ledger” – L C Cropper.

7. Specimen of Journal
Date Particulars Ledge
r Folio
(L.F.)
Debit
Amount
in Rs.
Credit
Amount
in Rs.
Name of the account to be debited Dr.
To name of the account to be
credited
(Narration:_________________________)

8. Journalizing
 The process of recording of transaction in a Journal
is called 'Journalizing’
 The record of a business transaction in a journal is
known as a ‘Journal entry’
 Steps for journalizing:

9. Importance of Journal and Utility of Journal
i. It eliminates the need for a reliance on memory
ii. It provides a chronological record
iii. It provides the information of debit and credit of a
transaction.
iv. It reduces the possibility of error.
v. Journal provides information relating to the following
aspects:
a) Credit sales, purchases of fixed assets, investments, goods
or anything else not dealt in by the firm.
b) Receipt of issue of bills of exchange, promissory notes,
hundies, cheques and other financial instruments.
c) Income earned but not received in cash and expenses
incurred but not paid.

10. 1) Journalize the following transactions in
the books of Shri. Krishna
2015 April
1
Krishna started business with cash of Rs. 25,00,000
2 Purchased goods for cash from Akash of Rs. 5,00,000
2 Deposited cash into bank of Rs. 10,00,000
5 Purchased goods from Raj enterprises Rs. 3,00,000
6 Sold goods for cash Rs. 8,00,000
10 Sold goods to Rekha on credit Rs. 2,00,000
15 Cash paid to Raj enterprises 3,00,000

11. Enter the following transactions in Journal
for the month of January, 2014.
 Jan. 1 Sushil & Co. started business with cash 1,00,000
 Jan. 2 Paid into Bank 60,000
 Jan. 4 Purchased Machinery and paid by cheque 30,000
 Jan. 6 Bought goods from Naresh 20,000
 Jan. 14 Paid salaries 5,000
 Jan. 15 Sold goods to Rajesh Kumar 15,000
 Jan. 17 Paid for Sundry Expenses 8,500
 Jan. 18 Cash deposited into Bank 20,000
 Jan. 19 Received Rent 6,000
 Jan. 22 Paid Naresh by cheque in full settlement of his A/c
19,750
 Jan. 24 Withdrawn cash for personal use 8,000
 Jan. 26 Salary paid in advance to Surjeet 2,500
 Jan. 28 Rajesh made the payment on A/c 10,000
 Jan. 30 Cash Sales for the month 16,500

12. 2) Journalise the following transactions in the
books of Ram for the month of March 2010.
 March 1 Mr. Sriram commenced business with cash Rs.
60,000.
 2 Purchased furniture for Rs. 5,000.
 4 Purchased goods for cash Rs. 2,000.
 7 Bought goods from M/s. Raj & Co. for Rs. 4,000.
 10 Sold goods costing Rs. 3,000 on cash.
 15 Purchased stationery for office use Rs. 1,000.
 19 Received cash Rs. 1,250 from Mr. Ketan in full
settlement of his account for Rs. 1,500.
 20 Paid salaries by cheque Rs. 1,500.
 25 Introduced additional capital Rs. 20,000.
 27 Paid to Raj Rs. 3,250 in full settlement of Rs. 3,500
 29 Sold goods for Rs. 15,000 to Mr. Dohi.
 31 Deposited Rs. 3,000 into the Bank.

13. 3) Journalise the following transactions in the books
of Mr. Shiva for the month of April 2010.
 April 1 Started business with cash Rs. 25,000/-
 2 Purchased goods worth Rs. 10,000/-
 4 Deposited cash Rs. 3,000 into the Bank.
 6 Purchased goods of Rs. 6,000 from M/s. Raju Trading
Company.
 9 Sold goods to Mr. Ramesh for Rs. 3,000.
 12 Paid to M/s. Raju Trading Company Rs. 3,000.
 15 Received Rs. 1,000 from Mr. Ramesh.
 20 Paid salaries Rs. 1,000/- and paid commission Rs.
1,600/- in cash.
 25 Bought stationery for office use Rs. 300.
 27 Withdrew Rs. 2,500 from business for personal use.
 29 Withdrew Rs. 4,000 from bank for office use.

14. 4) Journalise the following transactions in the journal
of Mr. Anand for the month of February, 2010.
 Feb 1 Borrowed from Bank @ 15% interest Rs.
20,000.
 3 Purchased goods from Mr. Sam for Rs. 3,500.
 4 Paid carriage and cartage Rs. 250
 7 Sold goods on cash Rs. 3,000.
 10 Paid Rs. 2,250 to Mr. Sam.
 15 Purchased office furniture for Rs. 6,000.
 18 Paid interest Rs. 450/- to Mr. Bank.
 20 Paid salaries Rs. 6,000.
 22 Cash sales Rs. 20,000.
 26 Cash purchases Rs. 15,000
 28 Paid Rs. 2,000 to Bank in part payment of loan.

15. 5) Journalise the following transactions in the books
of Mr. Vishal for the month of March, 2010.
 Mar. 1 Vishal started business with cash Rs. 35,000, goods worth
Rs. 10,000.
 2 Opened bank account in the Bank of India by depositing Rs. 5,000.
 4 Bought goods worth Rs. 6,000 @ 10% trade discount term.
 7 Sold goods worth Rs. 3,000
 9 Purchased furniture of Rs. 4,000 for office use and furniture of Rs.
1,000 for home use.
 14 Withdrawn goods of Rs. 1,000 for self use.
 17 Received Rs. 2,400 from Mr. Ravindra in full settlement of Rs.
2,450.
 19 Paid salaries Rs. 500 to office clerk and paid electricity bill of Rs.
750 in cash.
 24 Paid Mr. Raj Rs. 1,960 in full settlement of Rs. 2,000.
 26 Paid insurance premium of Rs. 1,200 on the life of Mr. Vishal, a
proprietor.
 29 Cash sales Rs. 3,000.
 30 Withdrew Rs. 4,000 from bank for office use.

16. 6)Draft journal entries for the business transactions
given below.
 Apr. 1 Mr. Ram started business with cash Rs. 5,000/-,
goods Rs. 7,500 and furniture Rs. 2,500/-
 3 Purchased goods worth Rs. 4,500 from Mr. Karan.
 5 Cash sales Rs. 6,000
 8 Purchased stationery for office use Rs. 500.
 10 Paid to Mr. Karan Rs. 4,350 in full settlement of Rs.
4,500.
 13 Deposited Rs. 1,000 into the Bank.
 16 Received Rs. 500 from Mr. Kiran.
 19 Withdrawn Rs. 200 from business for self use.
 23 Paid Rs. 150 for commission and paid Rs. 450 for
rent.
 27 Paid wages Rs. 600 in cash, and paid sundry
expenses Rs. 200/- by cheque.
 29 Borrowed Rs. 5,000 from wife for business purpose.
 30 Cash purchases Rs. 1,000.

17. Have nice day and happy learning