Recording of Transactions-I

the journal is subdivided into a number of books of original entry as follows: In this chapter you will learn about the process of journalising and their posting into ledger. The cash book and other day books are dealt in detail in chapter . This is the basic book of original entry. In this book, transactions are recorded in the chronological order, as and when they take place.

Afterwards, transactions from this book are posted to the respective accounts. Each transaction is separately recorded after determining the particular account to be debited or credited. The format of Journal is shown is figure . Journal L.F.

Debit Credit Fig. . : Showing the format of journal The first column in a journal is Date on which the transaction took place. In the Particulars column, the account title to be debited is written on the first line beginning from the left hand corner and the word ‘Dr.’ is written at the end of the column.

The account title to be credited is written on the second line leaving sufficient margin on the left side with a prefix ‘To’. Below the account titles, a brief description of the transaction is given which is called N arration . Having written the Narration a line is drawn in the Particulars