- Journal is referred to as the book of original entry
- Significant contributons of journal to the recording process
- it discloses in one place the complete effects of a transaction
- it provides a chronological record of transactions
- it helps to prevent or locate errors because the debit and credit amounts for each entry could be readily compared.
3. Journalizing means entering transaction data in the journa
4. The standard form and content of journal entries are as follows:
- the date
- the name of account to be debited and the amount
- the name of the account to be credited and the amount
- a description and explanation of the transaction ( i.e. narrative)
- a reference number for the source documents giving proof of the transaction
5. There are different types of Journal:
(a) General Journal
- Debit entries are debited to the particular account in the ledger
- Credit entries are credited to the particular account in the ledger
(b) Purchases Journal
- Net amounts owing to individual suppliers are credited to their individual accounts in the Purchases Ledger.
- The total credit purchases of goods for the period are debited to the Purchases Account in the General Ledger
(c) Returns Outwards Journal
- Net amount of returns to individual suppliers is debited to each individual account in the Purchases Ledger.
- The total returns outwards for the period should be credited to the Returns Outwards Account in the General Ledger
(d) Sales Journal
- Net amount owing by individual customes is debited to each individual account in the Sales Ledger
- The total credit sales of goods for the period are credited to the Sales Account in the General Ledger.
(e) Returns Inwards Journal
- Net amount of returns from individual customers is credited to each individual account in the Sales Ledger.
- The total returns inwards for the period should be debited to the Returns Inwards Account in the General Ledger.
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