“The process of recording a transaction in a journal is called journalizing the transactions.”
—Meigs and Meigs and Johnson
Journal is a book that is maintained on a daily basis for recording all the financial entries of the day. Passing the entries is called journal entry. Journal entries are passed according to rules of debit and credit of double entry system.
| 1 | 2 | 3 | 4 | 5 |
| Date | Particulars | L.F. | Amount | |
| Debit | Credit | |||
| xx-xx-xx | … … … … A/cDr.To … … … … A/c(… … Narration… …) | xxxx | xxxx | xxxx |
Column 1: It represents the date of transaction.
Column 2: Line 1 (… … … …) represents the name of account to be debited.
Line 2 (… … … …) represents the name of account to be credited.
Line 3 for narration of transaction.
Column 3: Ledger Folio (L.F.) represents the page number of ledger account on which we post these entries.
Column 4 : Amount(s) to be debited.
Column 5 : Amount(s) to be credited.
Notes
● If there are multiple transactions in a day, the total amount of all the transaction through a single journal entry may pass with total amount.
● If debit or credit entry is same and the corresponding entry is different, we may post a combined entry for the same. It is called ‘compound entry’ regardless of how many debit or credit entries are contained in compound journal entry. For example,
| 1 | 2 | 3 | 4 | 5 |
| Date | Particulars | L.F. | Amount | |
| Debit | Credit | |||
| Xxxx | … … … … A/cDr…. … … … A/cDr.To … … … … A/c(Narration… … … …) | xxxxxx | xxxx | xxxx |
