A Journal is an accounting record that is used to record the different types of transactions in chronological order or date order. Journals are often called or referred to as the books of original entry. The reason is that this is the first place that business transactions are formally recorded. You can think of a Journal…
Tag: Books of Original Entry
Cash & Credit Transactions
Cheques A Chequeis a document/instrument (usually a piece of paper) that orders a payment of money from a bank account. Technically, a cheque is a negotiable instrument instructing a financial institution to pay a specific amount of a specific currency from a specified transactional account held in the drawer’s name with that institution. Both the…
Source Documents
Source Documents are the original sources of information that provide documentation (proof) that a transaction has occurred such as sales invoices (tickets), invoices from suppliers, contracts, checks written and checks received , promissory notes, and various other types of business documents. These documents provide us with the information needed to record our financial transactions in…
Recording Transactions from Source Documents
Journals use the information from the source documents to create a chronological listing of all business transactions and detailed information about each transaction. Journals are preliminary records where business transactions are first entered into the accounting system. The journal is commonly referred to as the book of original entry. Specialized Journals-are journals used to initially…
General Journal
The Journal is a textual record of events (Debit and Credit) that is characterized by the fact that all the records it contains are in a sequential chronological order. Debit and Credit Journals can be viewed as pages of a book. Each page has lines and columns. A journal page has columns for the date, account name,…
Sales Journal
The Sales Journal is a special journal where Credit sales from customers are recorded. Steps in journalising Credit sales The following credit sales transactions are Journalised below: 2009 July 3 Sold goods on credit to Yule Terry for $!00 July 10 Credit sales to jerry Hulle $200 July 20 Sold stock for credit $300 to Larry Hadman
Purchases Journal
The Purchases Journal is a special journal where Credit purchases from suppliers are recorded. Steps in journalising Credit Purchases The following credit purchases transactions are Journalised below: 2009 July 5 Credit purchases from Karnot Webb $400 July 7 Goods purchased on credit $500 from Harlot Mcqueen July 15 Bought goods on credit 4600 from Clement Rhoden.
Returns Inwards Journal
The Sales Return & Allowances Journal is a special journal that is used to record the returns and allowances of goods sold on credit. Steps in Journalizing Returns Inwards The following Returns Inwards transactions are Journalised below: 2009 July 6 Goods returned from Yule Terry $ 10 July 13 Returned goods from Jerry Hulle $20 July 26…
Returns Outwards Journal
The Purchase Returns and Allowances Journal is a special journal that is used to record the returns and allowances of merchandise purchased on account. Steps in journalising Rturns Outwards The following Returns Outwards transactions are Journalised below: 2009 July 9 Goods returned to Karnot Webb $40 July 14 Returned goods to Harlot Mcqueen $50 July 31 Returns…
Cashbook
The Cash Book is used to record the receipt and payment of money by the business in the form of cash, or through the business bank account. It contains the cash and bank accounts. Columns are set up for: –The Date –Details Entries are made for the other account to enter to complete double entry –Folio The…