what type of entries are recorded in joural proper ?
Answers
Answered by
2
Journal proper [or General Journal] is a simple book of chronological record of business transactions. The use of this book is very much restricted in modern accounting system.
Only those transactions, which cannot be conveniently recorded in any of the other books of original entry i.e., subsidiary books or which are not sufficiently numerous to necessitate a special book being devised for them, are recorded in this book.
Transactions to be Recorded in Journal Proper:
This journal is now used to record the following transactions only:
(a) Opening Entries:
These entries are needed for opening accounts in the beginning of the financial year. All assets accounts are debited and all liabilities accounts credited and the difference is credited to Capital account.
(b) Transfer Entries:
These entries are needed to record transfer from one account to another. For example, an asset purchased is wrongly debited to purchases account, then to rectify the mistake the following entry will have to be passed.

(c) Rectification Entries:
When certain errors are committed in the books. These entries are passed in order to nullify the effect of errors. For example, goods sold for Rs.5000 to Mr. Ram has been entered in the Sales Day Book as Rs.500. This mistake is corrected by passing the following rectifying entry.

(d) Adjustment Entries:
When accounts are closed at the end of a financial year, before preparing final accounts certain adjustments have to be made relating to certain items like depreciation, outstanding expenses, interest on capital, etc.For example, if rent is outstanding for one month say, Rs.500, then the following entry will be passed in order to charge one full year’s rent to final accounts.
Only those transactions, which cannot be conveniently recorded in any of the other books of original entry i.e., subsidiary books or which are not sufficiently numerous to necessitate a special book being devised for them, are recorded in this book.
Transactions to be Recorded in Journal Proper:
This journal is now used to record the following transactions only:
(a) Opening Entries:
These entries are needed for opening accounts in the beginning of the financial year. All assets accounts are debited and all liabilities accounts credited and the difference is credited to Capital account.
(b) Transfer Entries:
These entries are needed to record transfer from one account to another. For example, an asset purchased is wrongly debited to purchases account, then to rectify the mistake the following entry will have to be passed.

(c) Rectification Entries:
When certain errors are committed in the books. These entries are passed in order to nullify the effect of errors. For example, goods sold for Rs.5000 to Mr. Ram has been entered in the Sales Day Book as Rs.500. This mistake is corrected by passing the following rectifying entry.

(d) Adjustment Entries:
When accounts are closed at the end of a financial year, before preparing final accounts certain adjustments have to be made relating to certain items like depreciation, outstanding expenses, interest on capital, etc.For example, if rent is outstanding for one month say, Rs.500, then the following entry will be passed in order to charge one full year’s rent to final accounts.
prabinkohar:
thanku so much
Similar questions