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					                Kamran
Kardan University Kabul
  Email: kamranuni@yahoo.com
 Journal is a book containing the original
  record of a transaction in order of
  occurrence.
 OR
 Journal is a chronological (day-by-day)
  record of business transactions.
 The simplest type of journal is called general
  journal and is shown as follow
Date   Description   Post        Debit   Credit
                     Reference    $        $
2006
Mar1

   2
 The  process of recording the transaction in
  general journal is called as journalizing or
  making an entry. The following is the
  procedure for recording transactions in
  general journal.
 Date column.
In this column the date on which transaction is
  completed, is recorded. year of account is
  written at the top and month below it. the
  month is written only on the top of the page
 The  dates are recorded in smaller column for
  every transaction.
 Description column.
 In this column the account to be debited is
  inserted at the extreme left, and account to
  be credited below it after providing some
  space on left side. Brief explanation of entry
  is also recorded in this column, generally
  known as narration.
   Post reference column.
   This account is completed when postings are
    made into ledger. the students are advised
    to insert a tick mark while posting the
    entries from journal to ledger.
   Amounts column.
   Two amounts column are provided in
    journal. The amount of transaction is
    recorded in the debit column against the
    account to be debited and the amount of
    the account(s) to be credited are recorded
    in credit column.
   If we are given a business transaction and want to
    find accounts to debited and accounts to be credited
    in that particular transaction we have to proceed as
    under.

   By the analysis of transaction find out the two or
    more accounts which are involved in that transaction.

   The account so found are classified in to assets,
    liabilities, capital, Revenue expense or withdrawals.
    Increase and decrease in account(s) are determine.

   Finally rule is applied.
   Nov 1: Asad started business by cash $100,000 .

   Nov 3: Purchased Merchandise for cash 11000$.

   Nov 5: Purchased Merchandise on credit from Ali $5000.

   Nov 17: Purchased Furniture for cash $40000.

   Nov 20; Sold merchandise for cash $15000.

   Nov 25: Paid cash to Ali 5000.

   Nov 26: Paid Rent expense 1000$.



                                                        8
JOURNAL ENTRIES OF Q#1




                         9
                                                Debit          Credit
Date                     Description             $               $
2006    Cash                                    100,000
Nov 1               Asad Capital                               100,000

        (Owner invested cash in the business)

 ”3     Purchases(Merchandises)                 11,000
                 Cash                                          11,000

        (Purchased merchandises for business)

 ”5     Purchases                                5000
                    Accounts Payable (Ali)                      5000


        (Purchased merchandise on loan basis)




                                                          10
” 17   Furniture                        40000
                      Cash                           40000

       (Purchased furniture for cash)



20     Cash                             15000
               Sales                                 15000
       (Goods sold on cash)


” 25   Account Payable(Ali)             5000
                   Cash                              5000

       (Cash is paid to outsider)

” 26   Rent Expense                     1000
            Cash                                     1000

       (Paid expenses in cash)




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