journal account

journal account
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

2018 Sep. 05
Cash a/c Dr
To Hari
journal account

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

journal account

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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 –
3.      Returned goods to Ram –
4.      Gave Ram in full payment –
5.      Sold goods to Mohan –
6.      Goods returned from Mohan –
7.      Received from Mohan in full payment –
8.      Cash goods bought –
9.      Cash goods sold –

10.      Goods sold – 3000/-

Answer – 1 

Date  Particular  L/F  Amt Dr.  Office Cr.  
01-04-021Cash  A/C                                Dr. Capital   A / C Cr.                             ( Being Business Started with cash )1500000  500000
02-04-021Purchase  A/CDr.                          Ram’s   A / C Cr.                            ( Being goods purchase from ram )120000  20000
03-04-021Dr. Ram’s   A/C                          Purchase Returns  A/C        Cr. ( Being goods purchase returns to ram )12000  2000
04-04-021Dr. Ram’s   A/C                          Cash   A/C                            Cr. ( Being cash full payment to ram )118000  18000
05-04-021Dr. Mohan’s   A/C                      Sales   A/C                           Cr. ( Being goods sales to mohan )130000  30000
06-04-021Sales Returns  A/C             Dr. Mohan’s   A/C                     Cr. ( Being goods returns from mohan )13000  3000
07-04-021Cash  A/C                           Dr. Mohan’s   A/C                      Cr. ( Being cash full receive from mohan )127000  27000
08-04-021Purchase  A/C                    Dr. Cash   A/C                           Cr. ( Being goods purchase by cash )11000  1000
09-04-021Cash  A/C                         Dr. Sales   A/C                        Cr. ( Being goods sales by cash )12000  2000
10-04-021Cash  A/C                        Dr. Sales   A/C                        Cr. ( Being goods sales by cash )13000  3000
journal account

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

DateParticularL/FAmt Dr.Office Cr.
01-04-021Cash  A/C                                     Dr. Capital   A / C Cr.                                   ( Being Business started with cash )11000000  1000000
02-04-021Purchase  A/C                              Dr. Cash   A/C                                      Cr. ( Being goods purchase from mohan by cash )120000  20000
03-04-021Cash  A/CDr.                                       Sales   A/C                                       Cr. ( Being goods sales to shyam by cash )  13000  3000
04-04-021Purchase  A/C                               Dr. Ram’s   A / C                                    Cr. ( Being goods purchase from ram )11000  1000
05-04-021Dr. Ramesh’s   A/C                              Sales   A/C                                      Cr. ( Being goods sales to ramesh )12000  2000
06-04-021Babu’s   A / C                                    Dr. Cash   A/C                                       Cr. ( Being cash payment to babu )15000  5000
07-04-021Cash  A/C                                     Dr. Purchase Returns  A/C                 Cr. ( Being goods purchase returns by cash )                14000  4000
08-04-021Purchase  A/C                                Dr. Cash   A/C                                       Cr. ( Being goods purchase by cash )12000  2000
09-04-021Cash  A/C                                      Dr. Shyam’s   A/C                                 Cr. ( Being cash receive from shyam )1 1000  1000
10-04-021Cash  A/C                                     Dr. Capital   A / C                                   Cr. ( Being business started with cash )1200000  200000
journal account

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 

DateParticularL/FAmt Dr.Office Cr.
01-04-021Furniture  A/C                              Dr. Cash   A/C Cr.                                      ( Being furniture purchase from mohan )120000  20000
02-04-021Furniture  A/C                              Dr. Ram’s   A / C                                    Cr. ( Being furniture purchase from ram )130000  30000
03-04-021Machine  A/C                               Dr. Suresh’s   A/C                                Cr. ( Being machine purchase from suresh )100000  100000
04-04-021Mahesh’s   A/C                             Dr. Furniture  A/C                            Cr. ( Being furniture sales to Mahesh )125000  25000
05-04-021Computer   A / C                            Dr. Cash    A/C                                   Cr. ( Being computer purchase by cash )120000  20000
06-04-021Salary  A/C                                 Dr. Cash   A/C                                    Cr. ( Being salary payment to ram )15000  5000
07-04-021Cash  A/C                                   Dr. Commission  A/C                       Cr. ( Being commission receive from surendra )13000  3000
08-04-021Cash  A/C                                    Dr. Stock  A/C                                   Dr. Capital   A / C                                 Cr.16000 2000      8000
09-04-021Purchase  A/C                             Dr. Cash   A/C                                    Cr. ( Being goods purchase by cash )14000  4000
10-04-021Cash  A/C                                   Dr. Wages  A/C                                Cr. ( Being wages receive from ram and shyam )14800  4800
journal account

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

DateParticularL/FAmt Dr.Amt Dr.
01-04-021Trade Expenses   A/C                    Dr. Cash    A/C                                      Cr. ( Being paid trade exp. )12000  2000
02-04-021Light Exp.  A/C                            Dr. Cash   A/C                                      Cr. ( Being paid light exp. )112000  12000
03-04-021Drawing  A/C                              Dr. Cash    A/C                                    Cr. ( Being cash personal use )15000  5000
04-04-021No Entry  ( No Order Entry )   
05-04-021Loss By Theft  A/C                     Dr. Cash    A/C                                   Cr. ( Being Cash Stolen by theft )1200  200
06-04-021No Entry ( No Order Entry )   
07-04-021Purchase  A/C                            Dr. Ram’s   A / C                                 Cr. ( Being goods order receive complete from ram 14000  4000
08-04-021Purchase  A/C                            Dr. Karan’s   A/C                               Cr. ( Being goods purchase from karan )12000  2000
09-04-021Cash  A/C                                  Dr. Capital   A / C                                Cr. ( Being business started with cash )1 30000  30000
10-04-021Drawing  A/C                            Dr. Purchase  A/C                            Cr. ( Being goods personal use from business )11000  1000
journal account

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 

DateParticularL/FAmt Dr.Amt Dr.
01-04-021Purchase  A/C                                      Dr. Ram’s  A/C                                          Cr.110800  10800
02-04-021Mohan’s  A/C                                       Dr. Sales  A/C                                             Cr.118000  18000
03-04-021Ram’s  A/C                                           Dr. Purchase Returns  A/C                          Cr.11800  1800
04-04-021Sales Returns  A/C                                 Dr. Mohan’s  A/C                                        Cr.13600  3600
05-04-021Ram’s  A/C                                            Dr. Cash  A/C                                              Cr. Discount  A/C                                        Cr.19000  8550 450
06-04-021Cash  A/C                                              Dr. Discount   A/C                                       Dr. Mohan’s   A/C                                        Cr.113680 720    14400
07-04-021Cash  A/C                                               Dr. Discount  A/C                                        Dr. Sales  A/C                                              Cr.17600 400    8000
08-04-021Ramesh’s   A/C                                      Dr. Cash   A/C                                              Dr. Discount   A/C                                       Dr. Sales   A/C                                             Cr.11360 1989 51      3400
09-04-021Purchase   A/C                                     Dr. Cash  A/C                                            Cr. Discount  A/C                                     Cr. Ramnivas’s  A/C                                Cr.                                                                            114400  11232 288 2880
10-04-021Babu’s  A/C                                         Dr. Sales   A/C                                           Cr.11600  1600
journal account

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

DateParticularL/FAmt Dr.Office Cr.
01-04-021Machine  A/C                                             Dr. Cash  A/C                                                    Cr.1500  500
02-04-021Drawing  A/C                                              Dr. Purchase   A/C                                            Cr.12000  2000
03-04-021Cash   A/C                                                    Dr. Bad debts   A/C                                           Cr.112000  12000
04-04-021Lass by fire  A/C                                          Dr. Purchase  A/C                                              Cr.12000  2000
05-04-021Loss by fire   A/C                                       Dr. Purchase   A/C                                           Cr.110000  10000
06-04-021Insurance Claim receive  A/C                   Dr. Loss by fire   A/C                                      Cr.18000  8000
07-04-021Cash   A/C                                                 Dr. Insurance Claim receive   A/C                  Cr.18000  8000
 ( ii )Profit & Loss   A/C                                   Dr. Loss by fire  A/C                                       Cr.12000  2000
08-04-021Loss by theft   A/C                                     Dr. Purchase    A/C                                          Cr.110000  10000
09-04-021Building  A/C                                            Dr. Cash  A/C                                                 Cr.1150000  150000
10-04-021Machine  A/C                                           Dr. Cash  A/C                                                 Cr. Purchase   A/C                                         Cr.113500  12500 1000
journal account

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

DateParticularL/FAmt Dr.Office Cr.
01-04-021P.N.B.  Open A/C                                      Dr. Cash   A/C                                                Cr.1500  500
02-04-021P.N.B. Deposit  A/C                                 Dr. Cash  A/C                                                 Cr.110000  10000
03-04-021Cash  A/C                                                 Dr. P.N.B.  A/C                                              Cr.18000  8000
04-04-021Cash  A/C                                               Dr. S.B.I. Loan  A/C                                    Cr.150000  50000
05-04-021Interest’s S.B.I.  A/C                              Dr. Cash   A/C                                             Cr.1250  250
06-04-021Drawing   A/C                                       Dr. Bank   A/C                                            Cr.1500  500
07-04-021Rent  A/C                                              Dr. Bank   A/C                                           Cr.13000  3000
08-04-021Insurance premium  A/C                      Dr. Bank  A/C                                            Cr.12000  2000
09-04-021Bank   A/C                                            Dr. Rent   A/C                                            Cr.14000  4000
10-04-021Purchase   A/C                                       Dr. Bank  A/C                                              Cr.120000  20000
11-04-021Mohan’s  A/C                                        Dr. Discount    A/C                                     Cr. Bank    A/C                                            Cr.1500  10 490
12-04-021Bank  A/c                                               Dr. Cash   A/C                                              Dr. Ram’s   A/C                                            Cr.1540 270    810
13-04-021Machine   A/C                                        Dr.  Bank    A/C                                            Cr.18000  8000
14-04-021Bank   A/C                                              Dr. Shyam’s  A/C                                         Cr.12000  2000
15-04-021Bank    A/C                                             Dr. Sales   A/C                                              Cr.110000  10000
journal account

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

DateParticularL/FAmt Dr.Office Cr.
1.Cash  A/c                                               Dr. Capital  A/c                                           Cr.1500000  500000
2.Purchase  A/c                                        Dr. Mohan’s  A/c                                        Cr120000  20000
3.Ram’s  A/c                                           Dr. Sales    A/c                                           Cr.14000  4000
4.Bansilal’s A/c Dr. Cash   A/c                                            Cr.13000  3000
5.Rent  A/c                                              Dr. Cash   A/c                                            Cr.1500  500
6.Entertainment  Exp.  A/c                     Dr. Cash   A/c                                            Cr.1300  300
7.Purchase  A/c                                       Dr. Sumit trading’s   A/c                            Cr.14000  4000
8.Salary   A/c                                          Dr. Cash    A/c                                           Cr.15000  5000
9.Office Drawing   A/c                          Dr. Cash   A/c                                           Cr.1500  500
10.Furniture  A/c                                     Dr. Ramesh’s   A/c                                         Cr.130000  30000
journal account

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

DateParticularL/FAmt Dr.Office Cr.
01-04-021Cash  A/C                                      Dr. Stock  A/C                                     Dr. Capital  A/C                                  Cr.1200000 60000    260000
02-04-021Canara Bank  A/C                        Dr. Cash  A/C                                      Cr.140000  40000
03-04-021Suma’s A/C Dr. Sales  A/C                                    Cr.118000  18000
04-04-021Bank  A/C                                    Dr. Discount  A/C                             Dr. Suma’s  A/C                                Cr.117300 700    18000
05-04-021Purchase  A/C                            Dr. Asha’s  A/C122000  22000
06-04-021Asha’s  A/C                                  Dr. Bank  A/C                                    Cr.122000  22000
07-04-021Telephone Exp.  A/C                  Dr. Bank  A/C                                     Cr.15000  5000
08-04-021Machinery  A/C                           Dr. Priya Industries    A/C                Cr.120000  20000
09-04-021Priya Industries   A/C                 Dr. Bank  A/C                                     Cr.120000  20000
10-04-021Drawing  A/C                               Dr. Bank  A/C                                     Cr.12000  2000
journal account

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

DateParticularL/FAmt Dr.Office Cr.
01-04-021Purchase     A/C                                   Dr. Ram’s  A/C                                          Cr.118000  18000
02-04-021Shyam’s  A/C                                       Dr. Sales  A/C                                             Cr.130000  30000
03-04-021Purchase   A/C                                    Dr. Discount  A/C                                     Cr. Cash   A/C                                          Cr.145000  900 44100
04-04-021Cash  A/C                                           Dr. Discount  A/C                                     Dr. Sales  A/C                                           Cr.124862.5 637.5    25500
05-04-021Purchase  A/C                                     Dr. Cash  A/C                                           Cr. Discount  A/C                                    Cr. Ramesh’s  A/C                                   Cr.142500  24225 1275 17000
06-04-021Rohan’s  A/C                                     Dr. Cash  A/C                                          Dr. Discount  A/C                                    Dr. Sales  A/C                                          Cr.118000 17640 360      36000
07-04-021Cash  A/C                                           Dr. Discount  A/C                                    Dr. Suresh’s   A/C                                    Cr.134500 500    35000
08-04-021Lara Creation  A/C                            Dr. Sales  A/C                                          Cr.135000  35000
09-04-021Sales Returns  A/C                            Dr. Lara creation   A/C                           Cr.15000  5000
10-04-021Bank  A/C                                         Dr. Discount  A/C                                   Dr. Lara creation  A/C                            Cr129500 500    30000
journal account

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