with a short description called narration. This facilitates making entries in the ledger. Since transactions are first recorded in the journal, it is called book of original entry or prime entry or primary entry or preliminary entry, or first entry. Journalising is the beginning of the accounting process for the financial transactions.
. . Meaning Journal is the book of original entry in which business transactions are recorded in chronological order, that is, in the order of occurrence. Transactions are recorded for the first time in the journal.
Entries are made in the journal based on source documents. Record of business transactions in the journal is known as Journal entry. The process of recording the transactions in journal is called as journalising. According to Professor Carter, “The journal as originally used, is a book of prime entry in which transactions are copied in order of date from a memorandum or waste book.
The entries as they are copied are classified into debits and credits, so as to facilitate their being correctly posted, afterwards in the ledger”. . . Format of Journal The format of journal is given below: In the books of……….
Journal L.F. Debit ` Credit ` A journal contains five columns; Date, Particulars, L.F., Debit and Credit. Date column : In this column the date of the transaction is recorded. Particulars column : The accounts involved in the transaction are recorded in this column.
The account debited is recorded first with the word ‘Dr.’ entered towards the end of the row and the account credited is entered in the next line after leaving a little space on the left and preceded by the word ‘To’. Leder Folio column (L.F.): The page number of ledger in which the accounts debited and credited are maintained is recorded here. Folio means page and ledger folio means page number of ledger. This L.F.
helps in cross verification of accounts in the ledger and helps in audit of accounts. Debit column : The amount to be debited is recorded in this column. The unit of measurement, that is, amount expressed in the currency of the