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Sukhpreet Kaur, Lovely Professional University Unit 6: Preparation of Journal

Unit 6: Preparation of Journal Notes

CONTENTS

Objectives
Introduction
6.1 Journal: Meaning and Format
6.2 Transactions in between the Real A/c
6.3 Journal Entries in between the Accounts of two different Categories

6.4 Compound Entries
6.5 Opening Entry
6.6 Summary
6.7 Keywords

6.8 Self Assessment
6.9 Review Questions
6.10 Further Readings

Objectives

After studying this unit, you will be able to:

z Prepare journal
z Construct journal entries between the accounts of two different categories
z Illustrate opening and compound journal entries

Introduction

Journal is a book of accounts in which all day to day business transactions are recorded in a
chronological order i.e. in the order of their occurrence. Transactions when recorded in a Journal
are known as entries. It is the book in which transactions are recorded for the first time. Journal

is also known as ‘Book of Original Record’ or ‘Book of Primary Entry’.
6.1 Journal: Meaning and Format

The practice starts with the journalizing of entries. After journalisation, the entries passed in
the journal will be passed into the ledger A/c. The immediate next stage is to prepare the trial
balance.
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Did u know? What is meant by the journal entry?
It is an entry systematically recorded to the tune of golden rules of accounting in the journal
book is known as journal entries.
The journal entries are recorded in the sequential order. The order of recording is conventionally
done on the basis of date. The journal entry usually contains two different parts, which are
nothing but two different accounts affecting the transactions.

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