Journal is also called as journal book or journal register. All vouchers other than cash vouchers, bank vouchers, purchase vouchers, sales vouchers, purchase return vouchers and sales return vouchers, are recorded in journal register.
Some time, if the size of the firm is small and the entries relating to purchase return or sales return etc. are very few then these entries also can be recorded in journal register.
All the adjustment entries, transfer entries, rectification entries etc. are entered in journal book through journal vouchers.
The amount written in debit side of journal is posted in debit side of the related account and the amount written in credit side is posted in credit side of the related account. To verify the arithmetical accuracy of debit side and credit side of the journal book, the totals of both sides are done. If the totals of both sides are equal then it is presumed at least there is no mistake in amounts recorded in journal books. The totals of journal are not posted any where.
The journal book contains the following columns:-
- Date of entry
- Ledger folio (L/F)
- Debit amount
- Credit Amount
The pages of journal registers should bear the proper serial number.
Prepare the Journal Vouchers for the following transactions and enter in to Journal Register of M/s XYZ Limited:-
|04.04.12||Stationery purchased on credit from M/s Prince Printers as per the invoice number 555 dated 04.04.12||14000/=|
|20.04.12||Furniture purchased from M/s Unique Furniture House as per their invoice number 11 dated 20.04.12||25000/=|
|25.04.12||Rs 40000/= paid to The National Insurance Company Limited towards insurance premium of office building which included prepaid insurance for next financial year for Rs.10000/=. By mistake whole amount was debited to Insurance Expenses Account. Pass the journal voucher for prepaid insurance.|
|30.04.12||A debit balance of Rs.55/= is being shown in the account of M/s Jay Associates. The same is to be written off.|
|30.04.12||Provision is to be made for unpaid Salaries for the month of April’2012||45000/=|
First of all, we shall make journal vouchers of above transactions as under:-
Printing and Stationery Expenses Account Dr. Rs.14000/=
To M/s Prince Printers Rs.14000/=
(Being stationery purchased from M/s Prince Printers on credit as per their invoice number 555 dated 04.04.12 enclosed)
Furniture Account Dr. Rs.25000/=
To M/s Unique Furniture House Rs.25000/=
(Being furniture purchased from M/s Unique Furniture House on credit as per their invoice number 11 dated 20.04.12 enclosed)
Prepaid Insurance Expenses Account Dr. RS.10000/=
To Insurance Expenses Account Rs.10000/=
(Being amount of prepaid insurance relating to next financial year 2012, in respect of insurance of office building wrongly taken in to insurance expense account, now transferred to Prepaid Insurance Expenses Account as per the copy of insurance policy enclosed)
Excess & Short Account Dr. Rs.55/=
To M/s Jay Associates Rs.55/=
(Being petty balance lying in account of M/s Jay Associates, written off as per the instruction slip enclosed)
Salaries Expenses Account Dr. Rs. 45000/=
To Salaries Payable Account Rs.45000/=
(Being provision made for the salaries payable for the month of April’2012 as per the copy of salary sheet encloses)
Now, the above vouchers shall be entered in the Journal Register as follows:
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