journal account

What is the meaning and definition of journal. Till now we have written a lot of information related to Accounts which you can read but there is one more thing in the account which we call Journal, it is very important in Accounting, so in this article you will tell what is Journal and its What are the benefits and what is the format of the journal.  How to enter the Journal, if you need it, then stay tuned with us and keep learning.

The word journal is derived from the French word Juna, it is also called journal . All the transactions in the business are first written in the journal, so it is called the primary entry book.

What is a Journal, understand its meaning and definition in detail.

The daily transactions are written in a systematic manner date wise and serial wise, in which account book is called Roznamcha or Journal. This is the first and main book of accounting. Also known as the initial book of accounts. Under the first stage of double accounting system, journals and subsidiary books are prepared. Small traders who have a small number of transactions use a journal as a book of initial accounts. But large traders with a large number of transactions use subsidiary ledgers.

Through the journal, it can be ensured that which side of the transaction should be debited and which side should be credited. A journal is also required for posting in the ledger.

What are the benefits of Journal? 

 1. Benefits of doing Khatauni
It is very important for every trader to keep a book of initial accounts and book of final accounts. With the help of a journal, there is a facility to write the final account book.

2. Helpful in understanding the principles

Every transaction in the journal is written in such a way that there is Debit in one account and Credit entry in the other account. It helps in understanding the basic principle of dual accounting system related to debit and credit.

What are Debtors and Creditors? Business Information for The Accountant

3. Permanent Account of Transactions –

The transactions are written in a date wise and serial wise systematic manner under the journal. Therefore, in the future, information related to it can be obtained easily and easily.
Journal Format – To master accounts, you need to understand the journal and its format thoroughly before proceeding. If you understand the Journal Format properly, then you will not face any problem in doing Computerized Accounts.

Journal Format

You have seen the format of the journal, now I am telling you about the description of its columns.

read also What is Management in Business

1. Date –

The first column of the journal is of date. All the transactions are done date wise so the column with date is very important. Month, year, and date are written inside this column. As long as the months and year do not change, the name of the year and month is written only once.

2. Particulars – 

The details are written in the second column of the journal. The two accounts affected by each transaction are recorded in this column. According to the rule of accounts, one account is debited and the other account is credited. The account to be debited is written in the first line. And the word “Dr” is used in front of it. The name of the account to be credited is written in the second line. But the word “Cr” is not used in front of it. The word “To” is written before the name of this account.

3. Ledger folio Number (ledger page number) –

Ledger Folio Number is written in short form Lf. In this field, the page number of the ledger is written on the page on which the account related to the transaction is recorded.

4. Amount –

There are two more columns inside this column i.e. the column of amount is made up of two columns in which one column is Dr and the other column is Cr. The amount of the account to be drawn is written in the fourth column and the amount of the account to be transferred is written in the last column.

Meaning and definitions of accounting. What is Manual Accounts

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Indian Book Accounting System and Methods of Accounting – Methods of Accounting.

 Journal Entry Questions And Answers

Journal Entry :-

Question – 1 

1.      Started business with cash – 500000/-
2.      Bought goods from Ram – 20000/-
3.      Returned goods to Ram – 2000/-
4.      Gave Ram in full payment – ​​18000/-
5.      Sold goods to Mohan – 30000/-
6.      Goods returned from Mohan – 3000/-
7.      Received from Mohan in full payment – ​​27000/-
8.      Cash goods bought – 1000/-
9.      Cash goods sold – 2000/-

10.      Goods sold – 3000/-

Answer – 1 

Question – 2

1.     Ram started business – 1000000/-

2.     Purchased goods from Mohan in cash – 20000/-

3.     Sold goods in cash to Shyam – 3000/-

4.     Purchased goods from Ram – 1000/-

5.     Sold goods to Ramesh – 2000/-

6.     Gave cash to Babu – 5000/-

7.     Goods returned 4000/-

8.     Goods purchased 2000/-

9.     Cash received from Shyam – 1000/-

10.      Ram and Shyam started business – 200000/-

Answer – 2

Question – 3

1.     Mohan bought furniture – 20000/-

2.     Bought furniture from Ram – 30000/-

3.     Purchased machine from Suresh – 100000/-

4.     Sold furniture to Mahesh – 25000/-

5.     Purchased Computer – 20000/-

6.     Salary given to Ram – 5000/-

7.     Commission received from Surendra – 3000/-

8.     Prakash started business with 6000 cash and goods worth Rs 2000.

9.     Purchased goods by giving cash – 4000/-

10.       Ram and Shyam got wages – 4800/-

Answer– 3 

Question – 4

1.     Business Expenses given – 2000/-

2.     Electricity charges given – 12000/-

3.     Withdrawal – 5000/-

4.     Mohan got an order for Rs.2000.

5.     A thief stole Rs.700 from the office but was caught and recovered Rs.500.

6.     Ram got an order for goods worth Rs.4000.

7.     Goods worth Rs.4000 were received as per order from Ram.

8.     Goods worth Rs 2000 were received from Karan.

9.     Started business with cash – 30000/-

10.      Withdrawed goods worth Rs.1000 from the business.

Answer– 4

Question – 5

1.      Purchased goods from Ram at 10% trading discount – 12000/-

2.      Sold goods to Mohan at 10% trading discount – 20000/-

3.      Returned the goods to Ram – 2000/-

4.      Goods came back from Mohan – 4000/-

5.      Last payment made to Ram at 5% cash discount.

6.      Received the final payment from Mohan at 5% cash discount.

7.      Sold goods worth Rs. 10000 to Ramesh at 20% trade discount and 5% cash discount.

8.      Sold goods worth Rs.4000 to Ramesh at 15% trade discount and 2.5% cash discount and paid 60% of the amount immediately.

9.      Bought goods worth Rs 16000 from Ram Nibas at 10% trade discount and 2.5% cash discount. But 80% of the amount was paid immediately.

10. Sold goods worth Rs.2000 to Babu at 20% trade discount.

Answer – 5 

Question – 6

1.      Cash expenditure incurred for setting up the machine – 500/-

2.      Goods donated – 2000/-

3.      Bad loan of Rs.12000/- which was waived off last year as non-refundable but received.

4.      Goods worth Rs.2000/- were destroyed in the fire.

5.      Insured furniture worth Rs.10,000/- was destroyed by fire.

6.      The insurance company accepted the claim of Rs. 8000 / –

7.      A claim amount of Rs.8000/- was received from the insurance company.

8.      Goods Stolen – Cost Price – 10000/- Selling Price – 11000/-

9.      Brick worth Rs. 100000/- and wood worth Rs. 50000/- purchased cash for building construction.

10. Bought an old machine for Rs 10000/-, paid a rent of Rs 500 on bringing it, and immediately spent Rs 2000/- on its repair, and also spent Rs 1000/- in the business to install it.

Note –

When goods are insured When goods are not insured

1.     On burning of goods                                    

Loss by ……. A/C    Dr.                                        Loss by …….. A/c    Dr.

Purchase   A/C       Cr.                                         Purchase  A/C         Cr.

2.     On acceptance of the claim                                              

Insurance Claim Receive A/C   Dr.             No Entry            

Loss by …….. A/C

3.     On receipt of the claim amount                                                                            

Cash   A/C    Dr. No Entry                                                      

Insurance Claim Receive  A/C  Cr.                      

4.     In case of rejection of claim

Profit & Loss A/C   Dr.                                           Profit & Loss  A/C   Dr.

Loss by ……..A/C     Cr.                                           Loss by ……… A/c    Cr.

Note –

When both cost price and selling price are given, the cost price is accounted for not the selling price.

Answer – 6

Question – 7

1. Account opened in      PNB with Rs.500.

2.      Deposited Rs. 10000/- in PNB .

3. Withdraw      Rs.8000/- from PNB .

4.      Took a loan of Rs. 50000/- from SBI .

5.      Interest of Rs.250 / – was paid to SBI

6.      Amount withdrawn from bank for personal use Rs.500/-.

7.      Rent paid by check Rs.3000/-.

8.   Issued  check for insurance premium 2000 / –

9.   Fare received by check 4000/-

10.  Bought the goods for Rs. 20000/- and paid by cheque.

11.  Mohan paid by check Rs.500/- he deducted Rs.10.

12.  The payment of Rs 900 from Ram was received after reducing the deduction of 10% in cash and deposited the rest in the bank.

13.  Purchased the machine for Rs.8000/- and paid by check.

14.  Shyam deposited 2000/- directly in our bank account.

15.  Sold the goods to Ramesh and paid Rs. 10000/- by check.

Answer – 7

Question – 8

1.     Start business with cash 500000/.

2.     Purchase goods from mohan 20000/.

3.     Sales goods to ram 4000/.

4.     Receive from bansilal 3000/.

5.     Rent paid 500/.

6.     Entertainments Exp. Paid 300/.

7.     Purchase from sumit trading company 4000/.

8.     Salary paid 5000/.

9.     Office drawing 500/.

10.   Purchase furniture on credit from ramesh 30000/.

Answer – 8

Question – 9

1.     Anuradha command business with cash – 200000 goods worth – 60000.

2.     Open an account with canara bank by deposit – 40000.

3.     Sold goods for – 18000 to suma.

4.     Receive cheque from suma for – 17300 and allowed a discount of – 700.

5.     Purchase goods for – 22000 from asha.

6.     Issued cheque to asha for – 22000.

7.      Paid telephone expenses of – 5000 by cheque.

8.     Purchase machinery for – 20000 from priya industries.

9.     Made payment of – 20000 to priya industries by cheque.

10.  Withdraw cash – 2000 from bank for personal use.

Answer – 10

Question – 11

1.     He goods purchase from ram 20000. at a trade discount 10%.

2.     He goods sold to shyam 30000. at a trade discount 10%.

3.     He goods purchase from ramesh 50000. at a trade discount 10% and cash discount 2%.

4.     He goods sold to mohan 30000. at a trade discount 15% and cash discount 2.5%.

5.     He goods purchase from rajesh 50000. at a trade discount 15% and cash discount 5% and 60% amount due is paid.

6.     He goods sold to rohan 40000. at a trade discount 10% and cash discount 2% and 50% amount due is paid.

7.     Cash receive from suresh 34500. Discount allowed 500.

8.     Sold goods on credit to lara creation 35000.

9.     Goods returns by lara creation 5000.

10.  Cheque receive from lara creation as final settlement 29500. Discount allowed 500. 

Answer – 11