Journal

Journal is a primary book of account in which all transaction of a business are recorded systematically date-wise.

            Like:- sales transaction, purchase transaction, receipt transaction, payment transaction, return transaction, etc.

OR

The word journal has been derived from the French word "Jour" Jour means day. So, journal means daily. Transactions are recorded daily in journal and hence it has named so. As soon as a transaction takes place its debit and credit aspects are analyzed and first of all recorded chronologically (in the order of their occurrence) in a book together with its short description. This book is known as journal. Thus we see that the most important function of journal is to show the relationship between the two accounts connected with a transaction. This facilitates writing of ledger. Since transactions are first of all recorded in journal, so it is called book of original entry or prime entry or primary entry or preliminary entry, or first entry.

       Recording a transaction in a journal is called journal entry or journalizing.

Journal has the following features:

Journal is the first successful step of the double entry system. A transaction is recorded first of all in the journal. So, journal is called the book of original entry.
A transaction is recorded on the same day it takes place. So, journal is also called a day book.
Transactions are recorded chronologically. So, journal is called chronological book.
For each transaction the names of the two concerned accounts indicating which is debited and which is credited, are clearly written into consecutive lines. This makes ledger - posting easy. That is why journal is called "assistant to ledger" or "subsidiary book".
Narration is written below each entry.
The amount is written in the last two columns - debit amount in debit column and credit amount in credit column.

To give knowledge of all transaction.

 To give correct knowledge of every transaction.
Helpful in setting all disputes

Advantage of Journal

The following are the advantages of journal:

Each transaction is recorded as soon as it takes place. So there is no possibility of any transaction being omitted from the books of account.
Since the transactions are kept recorded in journal chronologically with narration, it can be easily ascertained when and why a transaction has taken place.
For each and every transaction which of the two concerned accounts will be debited and which account credited, are clearly written in journal. So, there is no possibility of committing any mistake in writing the ledger.
Since all the details of transactions are recorded in journal, it is not necessary to repeat them in ledger. As a result ledger is kept tidy and brief.
Journal shows the complete story of a transaction in one entry.

Any mistake in ledger can be easily detected with the help of journal.

Format of Journal

Date	Particular	LF	Debit	Credit
	Total

 There are five Column In Journal:-

v  Date

v  Particular

v  L.F. [Ledger Folio (page)]

v  Dr. Amount

v  Cr. Amount

Date:-          In this column, we enter the date of transaction.

Particular:- In this column, we write transaction in the form of debit and credit.

L.F.(Ledger Folio):- In this column, we enter the page number when you posting ledger.

Credit Amount:- In this amount, we enter the credit amount of transaction.

Debit Amount:- In this column, we enter debit amount of transaction.

Ex.

Journalize the following transaction.

July 2016

v  July 1  Started business with cash of ₹. 10000

v  July 2 Withdraw cash for personal use of ₹ 3000

v  July 4 Bought goods from Shyam of ₹ 7000 by cash.

v  July 6 Purchase goods from Rohit of ₹ 8000

v  July 8 Sold goods to Raju for cash of ₹ 4000

v  July 10 Sold goods to Chandan of ₹ 5000

v  July 15 Paid wages to workman of ₹ 1000

v  July 19 Rent paid to landlord of ₹ 500

v  July 21 Salary paid to staff of ₹ 300

v  July 25 Commission paid to agent of ₹ 200

v  July 27  interest received from Mayank of ₹ 1000

v  July 28 Received from Chandan of ₹ 5000

v  July 30 Rent received of ₹ 100

v  July 31 Paid to Rohit of ₹ 8000

Journal entry in the book of ----------------------

Date	Particulars	L.F.	Dr. amt	Cr. Amt
1-July – 2014	Cash A/c. -----------------Dr.           To, Capital A/c. (Being: Started Business with Cash)		10000	10000
2-July-2014	Drawing A/c. ------------ Dr.        To, Cash A/c. (Being:- Withdraw Cash for personal use)		3000	3000
04-July-2014	Purchase A/c. --------------Dr.        To, Cash A/c. (Being: Bought Goods from Shyam by Cash)		7000	7000
06-July-2014	Purchase A/c. --------------Dr.         To, Rohit A/c. (Being: Purchase goods from Rohit)		8000	8000
08-July-2014	Cash A/c. ------------------ Dr.          To, Sales A/c. (Being: Sold goods to Raju by Cash)		4000	4000
10-July-2014	Chandn A/c.---------------Dr.         To, Sales A/c. (Being: Sold Goods to chandan )		5000	5000
15-July-2014	Wages A/c.----------------Dr.      To, Cash A/c. (Being: Paid wages to workman)		1000	1000
19-July-2014	Rent Paid A/c. ------------Dr.        To,Cash A/c. (Being: Rent Paid to Landlord)		500	500
21-July-2014	Salary Paid A/c. ----------Dr.         To, Cash A/c. (Being: Salary Paid to Staff)		300	300
25-July-2014	Commission Paid A/c.------------Dr.        To, Cash A/c. (Being: Commission Paid to agent)		200	200
27-July-2014	Cash A/c.-------------- Dr.        To, Interest Rec. A/c (Being: Interest Received from Mayank)		1000	1000
28-July-2014	Cash A/c.------------------ Dr.         To, Chandan A/c. (Being:Received from Chandan)		5000	5000
30-July-2014	Cash A/c. ---------------- Dr.      To, Rent Received A/c. (Being:Rent received)		100	100
31-July-2014	Rohit A/c. ----------------Dr.       To, Cash A/c. (Being: Paid to Rohit)		8000	8000
	Total