JOURNAL.pptx - MEANING OF JOURNAL Journal is the primary book of accounts where transactions are recorded in a chronological manner It is recorded

JOURNAL.pptx - MEANING OF JOURNAL Journal is the primary...

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MEANING OF JOURNAL Journal is the primary book of accounts where transactions are recorded in a chronological manner. It is recorded date-wise. Entry made in Journal is called Journal Entry and the process is called Journalising.
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TYPES OF ENTRIES Simple entry: The transaction which affects not more than two accounts Compound entry: The transaction which affects more than two accounts
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EXAMPLE 1. Owner introduced capital of Rs 1,00,000 Cash/Bank comes in the business, Dr Capital introduced by owner, Cr The entry is : Cash A/c /Bank A/c Dr To Capital A/c 1,00,000 1,00,000 (Being capital introduced by the owner) Date Particulars L.F. Amount Amount
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QUESTION- “O LEVEL” Journalise the following transactions in the books of Mr. Ram: 1. Ram started business with cash Rs 10,00,000. 2. Purchased goods for cash Rs 5,00,000 3. Sold goods to Shyam for Rs 1,00,000 4. Deposited in bank Rs 5,000 5. Paid salaries Rs 1,000 6. Received from Shyam Rs 50,000 7. Withdrew from bank Rs 2,000
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SOLUTION Date Particulars Amount (Rs) Amount (Rs) JOURNAL of Mr. Ram Dr Cr Cash A/c Dr
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  • Summer '20
  • Dr. Dre, General Certificate of Secondary Education, The Capital, Shyam a/c, Purchases A

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