Journal Explanation

The Journal:

Journal is first record.” Daily transactions are record in one paper or book in one particular order called journal”. A Voucher is documentary evidence for occurred transaction. (Ex: Receipt voucher, payment voucher, Cash memo, sales invoice etc.).Vouchers should be required at the time of Annual audit and Tax audit.Journal maintain on the basis of  Debit and Credit rules.

Standard Journal Proforma: 

Date          (1) Particulars

          (2)

Ledger Folio (3)   Dr.

 Amount

         (4)

Cr.

Amount

      (5)

    (A)

 

(B)

    Rs. P. Rs. P.
       

How to Write Journal:

There are total 5 Columns in standard Journal

1. Date: Transaction Occurred date write in this Column.

2. Particulars: Here the name of the account to be debited is written first and it is written close to is the line marked The word “Dr.” is written near the line Marked (B). In the next line, the name of the account to be credited is written preceded by the word “To”. This is written a few spaces away from the line (A). (Note: It is now becoming more and more popular to omit the words “Dr”, “To” and “By” from journal or ledger entries.). There must be an explanation of the entry and this is known as “narration”. Narration records facts leading to the entry and facilitates quick understanding.

3. Ledger Folio (L.F): The column for ledger folio is meant to record the page numbers on which the various accounts are kept in the ledger (a book containing accounts). Ledger accounts are prepared on the basis of journal.

4. Debit Amount: Debited account line amount write in this Column.

5. Credit Amount: Credited Account line amount write in this Column.

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