Advantages of Journals

Journal / Day Book

Journal / Day Book (Journal / Daily Book) This book is called the journal Dainik Bahi or Kachcha Rojnamcha, Kachchhi book. There are two types of books of accounts to be kept under the double accounting system.

(1) Books of original entries
(II) Books of final entries

Advantages of Journals

The books of early articles are called those in which they write everyday business deals with the help of the authenticators. Some traders write with the help of these certifiers in the book as soon as the deals are done and some traders quickly enter the book of the initial articles. Small or mid-range traders keep a single book for initial articles, which is called Dainik Rojnamcha or Journal. Big. Traders keep some books in the journal as well as early articles.

With the help of journals etc., books of final articles, such as ledger, etc. are prepared. These books are called the main books of business and journals etc. are called subsidiary books.

Advantages of Journals
The journal of the early books has an important place in accounting. This book has the following benefits.

(1) Knowledge of Transactions: In a journal, every transaction is done on a date-wise basis, so that the trader can get complete information about all the transactions that take place in the business. Therefore, permanent and historical information can be obtained about the medium of the journal.

(2) Classification of Transaction: While doing accounting in a journal, the behaviors are classified according to their nature and find out which accounts (personal, objective and profit-loss) are affected in it. According to this, they are named and submitted keeping the relevant rules in mind.

(3) Future Reference of Transactions: After accounting in the journal, a short description is written after accounting, from which future behavioral information can be obtained.

(4) Easily Posting in Ledger: When accounting in a journal, they are named and credited according to the nature of the accounts. As a result, it is easy to do Khatouni.

(5) Helpful to understand the principles: Every transaction in a journal is written in such a way that debit in one account and credit entry in another account. This helps in understanding the underlying principle of the two-entry system related to debit and credit.

(6) Permanent Account of Transactions: Practices under Janel are written in a date-wise and amazing manner. Therefore, information related to them can be obtained easily and easily in the future.

Importance of Journal in Books of Accounts

The first entry of any transaction is in the journal itself, so it is the most important book in the books of accounts. With the help of this, the main book Khatabhi is prepared, so the status of the journal as a subsidiary book of the said main book is very important. This is called the foundation of the books of account. Just as the foundation of a building is its foundation, similarly the basis of all accounts and articles is the journal. If there is an error in the journal then this error affects the entire account. Some other main purposes of the journal are as follows.

1. Knowledge of Transaction

2. Classification of Transactions

3. Narrations for Future ReferenceofTransactions

4. Easily posting accounts in accounts (Easily Posting in Ledger)

Necessary Documents for Entries

1. Cash Memo: On the purchase and sale of cash in goods, the receipts are taken and given by the buyer and seller respectively. It is called Cash Memo. In this receipt, the details related to the goods i.e. quantity, rate, some amount, etc. are clearly mentioned.

2. Receipt: The document given by the seller to the buyer at the time of receiving the payment is called 'Receipt'. It is produced in duplicate. The original copy is given to the payer for payment, and another copy (Duplicate of Carbon Copy) is retained by the payment received for the record.

3. Invoice: When the goods sold by the seller are sold, the complete details (quantity rate, amount, trade discount, etc.) of the goods which are given to the buyer are called invoices.

4. Debit Note: When the goods are returned to the seller by the buyer, the letter is prepared with the copy and sent to the supplier along with the goods.

5. Credit Note: When the goods are returned from the buyer, the seller sends the credit note to the buyer. 

Proforma of Journal and Method of writing it

The journal consists of the main five fields:

(1) Date: In this field, dates, months and years of transactions are written. All transactions are written by date.

(2) (Particular): The second food of the journal is the heart of behavior. In this mine, the year is written and the year is written. All transactions are written by date. The second food is behavior. The accounts of behavior in this eating are classified as that of Kansa. This account should be deposited. All this is written in a particular field. First account name. The side that affects the side is written first, leaving some space in front of him. "The word being written affects it. It is written using the word 'T' in the second line. After that, the narration of that behavior is written. After that a line should be drawn, then after that, the second behavior is entered. It should be noted that do not use the word Account (A / c) in front of the individual account, if you want to, then put an S in front of that account, like John's account. C) is the term used.

(3) Account shedding page number (L. E.): In this field, the number of the page of the ledger account is written on which the transaction was recorded. Ho. Let's summarize it. E. it is said.

(4) Debit Amount: The amount of the account named in this field is written.

(5) Credit Amount: The amount of the account deposited in this field is written.

Classification of Accounts

(1) Personal accounts - Personal accounts belong to individuals, money, and ins) - Personal accounts belong to individuals, debtors and creditors. For example - Aman & Company account is a credit customer or Satyam & Company account. A supply of goods. Account of Bhakya Satyam & Company A supplier of goods. A capital account is the account of the owner, but the account is made, but adjustments are made due to profit and loss. This account is further divided into three categories.

(a) Natural PersonalAccounts - These are related to transactions of individuals like John, Harry, etc.

(b) Artificial (Legal) Personal Accounts - For business purposes, business entities are treated as separate entities. In terms of the law, he is considered a person dealing with others. For example, government, companies (private or limited), clubs, cooperatives, etc.

(c) Representative Personal Accounts - This is the name of a person or organization. Expressions in the form of personal accounts. For example - unpaid liability account or prepaid account, capital account, withdrawal account.

(2) Impersonal Accounts - Accounts that are not personal like machinery account, cash account. Rent account etc. These can be further subdivided in the following ways:

(a) Real Accounts - Accounts that are related to the assets of the firm but not to the loans. For example Bhami Bhavan. Accounts-related to investments, permanent deposits, etc. are actual accounts. Handheld cash and bank accounts are also real accounts.

(b) Nominal Accounts - Such accounts are related to expenditure, loss, profit, proceeds, etc. Like, pay a salary account. Commission account of interest received. The net result of all unrealized accounts is reflected in profit or loss, which is transferred to the capital account. Hence unrealistic accounts are of a temporary nature. These accounts can be divided into two parts.

(A) Expenses and Losses Accounts: Expense accounts include those accounts which are spent on the conduct of business. Such as - freight, wages, salaries, etc. Similarly, those accounts were included in the accounts of losses. Losses that occur naturally during trade. Such as price loss, theft, loss from fire, etc.

(B) Income & Profit Accounts: Income accounts include those accounts which are earned while operating. Such as - Income from sales, Income from interest, Income from rent, Income from commission, etc. Profit accounts include those accounts that accrue profits from the operation of the business as well as the sale of assets. Are opened. Such as profit on sale of appropriation, compensation received by the supplier for late delivery of goods, prize received for selling more, etc.

(1) The expenditure can be divided into two parts, such as direct expenditure and indirect expenditure.

(2) expenses and income can be divided into two parts

Expenses: (a) Operations related expenses, (b) Non-operational expenses

Income: (A) Operating related income, (B) Non-operational related income


Transaction is a transaction between two parties. One party is the buyer and the other party is the seller. The behaviors are as follows.

(1) Cash Transactions: Practices that cause cash in the business or cash in the business. The behavior of cash is called. That is, the behaviors in which the following words occur are generally called cash transactions. like. Cash - Received. Reply or in practice, no person or institution has a name or has written the word cash with the name. Like - (1) Goods sold (2) Received discount (3) Freight paid

(2) Credit Transactions: Practices that do not receive cash in the business and are not paid in cash are called lending practices, ie the transactions in which cash - repaid, received, words do not come. But the name of a person, organization or company comes up, they are called lending practices. Like - (1) bought goods from Rahul (2) bought a computer from Samsung Computer.

(3) Exchange Transactions: Practices in which cash or personal account is not affected and in which property is received for goods, services for goods or goods are received or given for goods, etc. This is called behavior.

Rules of journalizing in the journal Before making entries in the journal it is necessary to know the principles of the double accounting system. Following are the principles of double accounting system

(1) In each behavior, two sides are affected, one name (Debitor Dr.) And the other deposit (Creditor Cr.).

(2) In each behavior, both sides are affected by the same amount (Amount). Journal entries are made on the basis of double accounting system rules. After getting information about the nature of accounts and the nature of practices, it is necessary to know which account is to be named and which account should be deposited. The rules of different accounts are as follows:

Personal accounts
1. Personal accounts are credited to the recipient (Debitor Dr.), And creditor to the payee (Creditor Cr.).

The account of the person is debited, which someone receives from the business. And that person's account is credited (deposited). Takes goods for trade.

Like - 1. 1, 700 to Ravi Borrowed goods sold.

Two accounts first Ravi's second sales account. This rule will only apply to Ravi's account which is a personal account. Ravi receives goods from trade. Hence, his account will be debited in the books of trade.

2 . 1 from Rohit Rs 500 Borrowed goods.

2. Real Account 
debits the item that arrives and credits the item it leaves.

(Debit What Comes in and Credit What Goes out)

The account of the goods received in trade is debited and the account of goods going through trade is credited.

Such as  - Purchased goods Rs. 54, 000. .

In this, two accounts are made goods and cash accounts, both accounts are objective accounts. The vehicle entered the business, so the goods account will be debited. And the business has cash so there will be a cash account credit.

3. Nominal accounts

 Debit all losses and expenses, and credit all profits and income. (Debit all Losses and Expenses and Credit all Profit and Income)

Such as  - 1475 rupees paid rent.

In this, the rent account is an unrealized account, and since the rent is expensive, the rent account will be debited.

Points to be taken into care while recording a transaction in the journal

1. Journal accounts can be a single entry (ie a debit and a credit), or a mixed entry (ie a dr or half debit or credit). In such cases, it is important that both facets. (Debit and Credit) totals.

2. If the journal articles are recorded on many pages, then the totals of each page are added and the title is done, then the totals of each page are applied and the rest is written on that page. And also this yoga should be carried forward to the beginning of the next page.

Procedure for Journalizing in Journal

The following procedure should be followed to make an entry in the journal:

(1) First of all, understand the deal by studying it and find out which accounts are affected in this deal.

(2) To find out the nature of the affected accounts, that is, whether the accounts related to the transaction are individual subject or unrealized accounts. To find out their debit or credit according to the rules related to them.

(3) Accounting of these deals in the journal.

(4) To add and carry forward the journal.

Now we will mention some personal transactions:

(1) Rakesh Rs 7, 500. Started trading with This means that the business has Rs 7, 500. Any increase in property as per the above rules. Is debited. Now its owner in business, Rs. 7,500 Have to give. The above rule also states that an increase in capital is credited.

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