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Kamran Kardan University Kabul Email: kamranuni@yahoo.com

Kamran Kardan University Kabul Email: kamranuni@yahoo.com . Journal. Journal is a book containing the original record of a transaction in order of occurrence. OR Journal is a chronological (day-by-day) record of business transactions.

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Kamran Kardan University Kabul Email: kamranuni@yahoo.com

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  1. Kamran Kardan University Kabul Email: kamranuni@yahoo.com

  2. Journal • Journal is a book containing the original record of a transaction in order of occurrence. • OR • Journal is a chronological (day-by-day) record of business transactions. • The simplest type of journal is called general journal and is shown as follow

  3. GENERAL JOURNAL

  4. The process of recording the transaction in general journal is called as journalizing or making an entry. The following is the procedure for recording transactions in general journal. • Date column. In this column the date on which transaction is completed, is recorded. year of account is written at the top and month below it. the month is written only on the top of the page

  5. The dates are recorded in smaller column for every transaction. • Description column. • In this column the account to be debited is inserted at the extreme left, and account to be credited below it after providing some space on left side. Brief explanation of entry is also recorded in this column, generally known as narration.

  6. Post reference column. • This account is completed when postings are made into ledger. the students are advised to insert a tick mark while posting the entries from journal to ledger. • Amounts column. • Two amounts column are provided in journal. The amount of transaction is recorded in the debit column against the account to be debited and the amount of the account(s) to be credited are recorded in credit column.

  7. Procedure of finding debit and credit • If we are given a business transaction and want to find accounts to debited and accounts to be credited in that particular transaction we have to proceed as under. • By the analysis of transaction find out the two or more accounts which are involved in that transaction. • The account so found are classified in to assets, liabilities, capital, Revenue expense or withdrawals. Increase and decrease in account(s) are determine. • Finally rule is applied.

  8. Question # 1 • Nov 1: Asad started business by cash $100,000 . • Nov 3: Purchased Merchandise for cash 11000$. • Nov 5: Purchased Merchandise on credit from Ali $5000. • Nov 17: Purchased Furniture for cash $40000. • Nov 20; Sold merchandise for cash $15000. • Nov 25: Paid cash to Ali 5000. • Nov 26: Paid Rent expense 1000$.

  9. JOURNAL ENTRIES OF Q#1

  10. JOURNAL

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