Credit Note

Journal Proper 


Main Journal (JournalProper) All the practices which cannot be initially audited in other subsidiary books are accounted for in the main journal (Journal Proper).  In a small business, a journal is a book of initial accounts and in this, all kinds of transactions are recorded.  But the journal has a different nature in big business where subsidiary books are used.  
                                                    Here the journal is the eighth subsidiary book and it is called the main journal as the subsidiary book.  The format of the main journal and the rules for accounting in it are those which are adopted for accounting in the journal (journal paper).  In subsidiary books (purchase, sale, purchase return, sales return, cash, bills payable, bill book received) transactions are accounted for according to their nature but some of the transactions are not related to any of the subsidiaries mentioned above.  Such practices are written in the main journal.  


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The following behaviors are accounted for in the main journal
1.  Opening Entry 
2.  Closing Entries 
3.  AdjustmentEntries 
4.  Transfer Entries 
5.  Entries for Rectification of Errors 
6.  Miscellaneous Entries 


1.Opening Entry
                         At the end of the opening entry account, the balance of real and personal accounts is drawn.  The final balance of these accounts becomes the initial balance of the next year.  Therefore, the entry made to write these balances in the accounting books of the new year is called Opening Entry.  This entry is made at the beginning of the accounting year.  The initial entry is made as follows: Assets / c To Liabilities A / c ToCapitalA / c Dr.

2.  Closing Entries 
                              Entries that are made to move goods related accounts and unrealized accounts to the trading account and Profit | and Loss account are called final entries.  These entries are made in the main journal at the end of the accounting period.  

3.  Adjustment Entries 
                                    Adjustment entries are also made in the main journal at the end of the accounting period.  Know the true economic condition and profit of business - loss.  It is necessary to make adjustment entries.  In the absence of adjustment entries, the final accounts prepared do not reveal the correct position.  Some important adjustments are Outstanding Expenses, Prepaid Expenses, Accrued Income, Unearned Income, Depreciation, Interest on Capital, Withdrawal.  Interest in Drawings etc.  

4.  Transfer Entries 
                               Some accounts are part of another account, but they are opened separately for information.  For example, the Drawings account is a part of the capital account but the account is opened to know how much withdrawal has been done by the owner.  At the end of the accounting period, the balance entry of an account is transferred to the corresponding account.

5.  Entries for Rectification of Errors 
                                                           Sometimes errors occur when accounting transactions in accounting books.  To improve these, entries are made in the main journal itself.  
                                                                  Adjustment entries, final entries, transfer entries, inaccuracy correction entries are detailed in separate chapters.  

6.  Miscellaneous Entries 
                                        There are some entries that cannot be done in other subsidiary books, ie there is no specific subsidiary book for them.  Hence they are also done in the main journal.  Some examples of these are 
(a) Bad Debts 
(b) Fixed Assets Purchased on Credit 
(c) Good lost by theft (The) Goods donated (Goods)  given in charity) 
(y) Withdrawalofgoods by the proprietor for personal use by the owner (R) Goodslostbyfire etc.

Example (Illustration) 7: Make the following Journal of Sharma & Sons (From the following transactions prepare Journalproperof M. Sharma & Son's).  The assets and liabilities of 2005.

MAY1     Sharma & Sons were as follows - Cash Rs. 10,000.  Reality 1700 Rs.  , Furniture Rs 3000  Rohan (debtor).  Rs 2500  , Gopesh (creditor) Rs. 750  , Machinery 5, 500 Rs.  (Following assets and liabilities of Sharma & Son's - Stock | 1700, Furniture Rs. 3, 000, Cash Rs. 10, 000, Rohan (Debtor) Rs. 2, 500%; Gopesh (Creditor) Rs. 750; MachineryRs  5, 500] 

May8         Purchased the machine from Rajendra 10000 (Purchased Machinery from RajendraRs. 10, 000) 

May 10    Sold furniture to Amar for Rs. 1, 000 (Sold furniture to Amar Rs. 1, 000) May 16 Goods donated.  Given Rs 110 (Goodsgivenawayascharity Rs. 110) 

May25    Due to the bankruptcy of Narendra Rs 350 will be written off of bad debts (Surendra became insolvent and Rs. 350 bad debts | written off).
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