Question

journalising of household transaction for a month?

Answer 1

Journal is the first point of recording transactions. The transactions only which involves money matter are recorded in journal. There are many types of household transactions which can be financial and non-financial. Eg- payment for gas cylinder involves paying cash. Purchase a/c is debited and cash is a current asset (real account golden principle) goesout is credited.buying dining table- paying cash and furniture coming in.buying grocery online - bank transactionNon financial transactions like giving pocket money - in cash- to son/daughter involvescash but within home, so it cannot be journalised . But same pocket money transferred to his bank account involves payment through bank and will be journalised.Journal entry for a month will reveal monthly expenses, payables and also total expenses on a certain items.I hope this answer is helpful to you