MEANING OF JOURNALJournal is the primary book ofaccounts where transactions arerecordedin achronologicalmanner.It is recordeddate-wise.Entry made in Journal is calledJournal Entryand the process iscalledJournalising.
TYPES OF ENTRIESSimple entry:The transaction whichaffects not more than two accountsCompound entry:The transactionwhich affects more than twoaccounts
EXAMPLE1.Owner introduced capital of Rs 1,00,000Cash/Bank comes in the business, DrCapital introduced by owner, CrThe entry is :Cash A/c /Bank A/c DrTo Capital A/c1,00,0001,00,000(Being capitalintroduced by theowner)DateParticularsL.F.AmountAmount
QUESTION- “O LEVEL”Journalise the following transactions in thebooks ofMr. Ram:1.Ram started business with cash Rs 10,00,000.2.Purchased goods for cash Rs 5,00,0003.Sold goods to Shyam for Rs 1,00,0004.Deposited in bank Rs 5,0005.Paidsalaries Rs 1,0006.Received from Shyam Rs 50,0007.Withdrew from bank Rs 2,000
SOLUTIONDateParticularsAmount(Rs)Amount(Rs)JOURNAL of Mr. RamDrCrCash A/cDr
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Dr. Dre,General Certificate of Secondary Education,The Capital,Shyam a/c,Purchases A