All the business transactions are
to be recorded in the journal in the form of debit and credit. This is the
second stage in accounting cycle.
A Journal is a book in which
transactions are recorded in the order in which they occur i.e. chronological
order. A journal is called a book. The process of recording a transaction in
journal is called ‘journalizing’. The entry made in the journal is called
journal entry.
Format of a Journal
|
Date
|
Particulars
|
L.F.
|
Debit Amount
|
Credit Amount
|
|
1
|
2
|
3
|
4
|
5
|
1.
Date Column:
In this column the date on which
the transaction took place is entered. The transactions must be recorded in chronological
order, i.e. transactions are to be entered date wise. The year and month is
written once, till they change.
2.
Particulars Column
In this column the names of the
accounts to be debited is written in the first line and then the names of the
account to be credited is recorded in the second line. They are followed by
Narration given in the brackets. Narration is a brief explanation of the
transaction entered.
3.
L.F. Column
This is called ledger folio
column. In this column the page number of the ledger will be entered when it is
posted into its relevant account in the ledger. This helps in verification of
books of account in case of any error.
4.
Debit Amount Column
In this column the amount to be
debited is written.
5.
Credit Amount Column
In this column the amount to be
credited is written. The amount is in Rupees in INDIA
Note:
Except, the ledger folio column, all other columns are recorded at the time of
journal entry.
