Livestock Economics, Marketing and Business Management

JOURNAL

• It is the book of original entry i.e. the entries of all transactions are recorded in chronological order in the book of prime or first entry.
• ‘Journal proper’ is used only when absolutely necessary, i.e. when the other subsidiary books do not serve the purpose and it becomes useful in the following cases;
  • Opening entries
  • Rectification entries
  • Adjustment entries
  • Closing entries
  • Self- balancing entries for internal check purpose
  • Entries involving purpose and sale on credit of items bought otherwise than for resale at a profit
  • Transactions for which there is no specific subsidiary book eg. Consignment, joint ventures and dissolution.
• These entries are written in a technical form.
• The process of making entries in the journal is known as ‘journalizing’ and the entries are known as ‘journal entries’.
• In a business, every transaction is passed through the journal before making the final entries in the ledger.
• The model ruling of a journal is as follows.

Date

Particulars

V.No

L.F.

Debit(Rs)

Credit(Rs)

• A complete Journal Entry should contain the following items
  • Data of transaction
  • Particulars of accounts to be Debited or Credited
  • The amount involved
  • Number of the voucher or evidence for the transaction
  • Page of ledger where it is entered
  • The narration, i-e Circumstances for the journal entry