Journal
, Introduction
The books in which a transaction is recorded for the first time from a source
document are called ‘Books of Original Entry’. Journal is one of the basic
books of original entry in which transactions are originally recorded in a
chronological (day to day) order according to the principles of double entry
system. When the size of the business is a small one, then it is possible to
entre each and every transaction in the Journal. But when the size of the
business grows, it becomes no longer possible to record each and every
transaction in the Journal. As such, the Journal is sub-divided into a number of
Sub-Journals known as special purpose subsidiary books or books of original
entry. Each type of transaction is recorded in a separate subsidiary book.
The subsidiary books may be enumerated as under :-
,1. Cash Book
2. Purchases Book
3. Sales Book
4. Purchases Return Book
5. Sales Return Book
6. Bills Receivables Book
7. Bills Payable Book
8. Journal Proper
These books are termed as ‘books of original entry’ because transactions
are first of all recorded in these books. A businessman need not maintain
all of the above mentioned subsidiary books, but he may maintain any of
the above books according to the need and requirements of his business.
In this chapter, only ‘Journal’ has been discussed. Subsidiary books have
been disussed in the subsequent chapters.
, Meaning of Journal
Journal is a books of original entry in which the transactions are recorded first
of all, as and when they take place.
Thus, the journal provides a date-wise record of all the transactions with
details of the accounts debited and credited, and the amount of each
transaction. Prior to recording in Journal, the transactions may also be
recorded in a rough book called ‘Waste Book’ or ‘Memorandum Book’.
Maintenance of waste book is not necessary but where the number of every
day transactions is so large that it is not possible to for a businessman to
remember all of them, the use of the waste book may prove helpful. Later on
which the help of waste the help of waste book recording is made in Journal.
, Introduction
The books in which a transaction is recorded for the first time from a source
document are called ‘Books of Original Entry’. Journal is one of the basic
books of original entry in which transactions are originally recorded in a
chronological (day to day) order according to the principles of double entry
system. When the size of the business is a small one, then it is possible to
entre each and every transaction in the Journal. But when the size of the
business grows, it becomes no longer possible to record each and every
transaction in the Journal. As such, the Journal is sub-divided into a number of
Sub-Journals known as special purpose subsidiary books or books of original
entry. Each type of transaction is recorded in a separate subsidiary book.
The subsidiary books may be enumerated as under :-
,1. Cash Book
2. Purchases Book
3. Sales Book
4. Purchases Return Book
5. Sales Return Book
6. Bills Receivables Book
7. Bills Payable Book
8. Journal Proper
These books are termed as ‘books of original entry’ because transactions
are first of all recorded in these books. A businessman need not maintain
all of the above mentioned subsidiary books, but he may maintain any of
the above books according to the need and requirements of his business.
In this chapter, only ‘Journal’ has been discussed. Subsidiary books have
been disussed in the subsequent chapters.
, Meaning of Journal
Journal is a books of original entry in which the transactions are recorded first
of all, as and when they take place.
Thus, the journal provides a date-wise record of all the transactions with
details of the accounts debited and credited, and the amount of each
transaction. Prior to recording in Journal, the transactions may also be
recorded in a rough book called ‘Waste Book’ or ‘Memorandum Book’.
Maintenance of waste book is not necessary but where the number of every
day transactions is so large that it is not possible to for a businessman to
remember all of them, the use of the waste book may prove helpful. Later on
which the help of waste the help of waste book recording is made in Journal.
