Page 56 - DCOM101_FINANCIAL_ACCOUNTING_I

Financial Accounting-I

Notes Date Particulars Ledger Folio Debit Credit
(`) (`)
Number of the day in the To debit the name of the account Page number in the
month, Name of the month and To credit the name of the account respective ledger
Year in full
The given below is the explanation of journal:
1. Date: In this column, we record the date of the transactions with its month and accounting
year. We write year only once at the top and need not repeat it with every date.

Example: Date
2006
April 15
2. Particulars: The accounts affected by a transaction i.e the accounts which have to be debited
or credited are recorded in this column. It is recorded in the following way:
In the first line, the account which has to be debited is written and then the short form

of Debit i.e., Dr., is written against that account’s name in the extreme right of the same
column. In the second line after leaving some space from the left of the entry in the fi rst
line, the account which has to be credited is written starting with preposition ‘To’ Then in
the third line, Narration for that entry which explains the transaction, the affected accounts
of which are entered, is written within Brackets. Narration should be short, complete
and clear. After every journal entry, horizontal line is drawn in the particulars column to
separate one entry from the other.

Example: Rent paid in cash on 1 April, 2006
st
Date Particulars
2006 Rent A/c.............................. Dr
April 1 To Cash A/c ...............
(Rent paid in cash)
_____________________
3. Ledger Folio: The transaction entered in a Journal is posted to the various related accounts
in the ‘ledger’ (which is explained in another unit). In ledger-folio column we enter the
page-number where the account pertaining to the entry is opened and posting from the
Journal is made.
4. Dr. Amount: In this column, the amount to be debited is written against the same line in
which the debited account is written.

5. Cr. Amount: In this column, the amount to be credited. is written against the same line in
which the credited account is written.
Journalising the entries is different from one transaction to another. The difference is only due
to nature and characteristics of the transactions. To journalise as easy as possible, the systematic
approach to be adopted to post the transactions without any ambiguity.

Notes Journalising can be generally categorized into following various categories:

1. Taking place within the same natured accounts
2. Taking part in between accounts of two different in categories.

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