Journal Entry

The journal entry is the process of recording of financial (fiscal) information (chosen generally from a journal (day book) coupon) relating to business concern transactions in a journal such that the debits are equal to credits in journal. The journal entries provide an audited account trail and a means of analyzing the consequences of the transactions on an organization's financial status. Ascertain as well journalizing method.

Each accounting system transactions are entered through journal (day book) entries that show accounting figures, numbers and whether those accounts are recorded in credit or debit side of accountings.

The journal entries are whenever we made a business concern transaction we have to pass an accounting entry relating to that in the related ledger book is known as journal entry in the accounts.

The entering of financial data (claimed generally from a journal verifier) relating to business concern transactions in a journal such that the debits equal credits (liabilities). The journal entries allow an inspect trail and a means of analyzing the issues of the transactions on a system of financial situation.



    

Journal Entry Example

Journalize the following transaction:

1. Charged depreciation on furniture Rs. 300.
2. Rent due, but not paid Rs. 2000.
3. Commodities given as charity Rs.500.
4. Written off bad debts Rs. 200.
5. Recovered the bad debts Rs. 100.
6. Commodities distributed as samples Rs. 50.
7. Commodities withdrawn by the proprietor for his personal use Rs. 150.
8. Loss of commodities by fire Rs.250.
9. Loss of cash by the theft Rs.600.
10. Received advance from Ramesh for supply of commodities Rs.1000.
11. Advance given to a supplier for the supply of commodities Rs. 2000.

Answer:

Journal Entry Example

Journal Entry






Next Chapters

Single Entry Accounting
Debit
Depreciation Dividends in Accounting
Double Entry Accounting
Cash Book
Discount Assets
Ledger in Accounting
Final Accounts
Liability Debenture
Journal Entry
National Income
Trial Balance Payroll Accounting
Drawings in Accounting
Petty Cash Book
International Trade Admission of a Partner
Annuities
Book Keeping
Bill of Exchange  


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