FINANCIAL ACC 101 ~ EDU-MADE-EASY BLOG

JOURNAL PROPER

Hey Guys, wats happening with y'all. Hows the week going, have fun and be positive. I know sometimes it is very difficult to be but if it helps remember that God loves you very much and his son shed his blood publicly to make sure you are free and happy- so don't let the enemy win, when you are unhappy and negative he is winning. If not for yourself at least to make sure he is not happy concerning you, stay positive cos whenever you are positive he is like a mad man roaming about in anger. So upset the enemy today, lolz. Halleluya- Jesus is indeed Lord forever more. Okay enough of that, let's get straight to work.

The Journal is a book of Prime entries into which Transactions are entered on a daily basis. In other words, It is a day to day book of all Business Transactions, where both aspects of Transactions are recorded in a chronological order and classified as debit and credit before they are posted to the ledger. The Journal has columns for Date, Particulars, Folio, Debit and Credit. The Entries are recorded along with an explanation of each showing the nature of the Transaction. This is referred to as Narration.

The Journal shows:

i. The Date

ii. Account to be debited

iii. Account to be credited

iv. The Narrative

Classes of Entries:

a. Simple Entries- In this entry, only two accounts are involved. One account will be debited and the other credited.

b. Composite Entries- In this entry, One account may be credited and several other accounts will be debited and vice versa ( which means and the other way around too).

Advantages of Journal:

* Its main purpose is to provide a convenient record of transactions in chronological order.

* Journal reduces the risk of omission of Transactions.

* The explanations of the Entries are made known by the Journal.

Uses of Journal Proper:

# Correction of Error.

# For Recording Transactions that don't occur regularly.

# For Recording of Disposal of Fixed Assets.

# Transfer of Items between Accounts.

# Sales and Purchases of Fixed Assets Account.

# Double Entry Transaction.

# For Recording of Opening and Closing Entries.

NOTE: Any Transaction that cannot be entered in the Subsidiary Books must appear in the Journal before being posted to the Ledger.

ILLUSTRATION:

1. Disposal of Assets on Credit

a. On January 1st Sales of Equipment for N350 to Amanda.

Date	Particulars	F	Dr	Cr
1-Jan	Equipment			N350
	Amanda		N350
	(Sales of Equipment N350 to Amanda.)

LEDGER ENTRIES:

Dr Equipment A/c Cr
Date	Particulars	Amount	Date	Particulars	Amount
			1-Jan	Amanda	N350

Dr Amanda's A/c Cr
Date	Particulars	Amount	Date	Particulars	Amount
1-Jan	Equipment	N350

b. On January 2nd Purchases of Equipment for N350 from Amanda.

Date	Particulars	F	Dr	Cr
2-Jan	Equipment		N350
	Amanda			N350
	(Purchased Equipment from Amanda N350.)

LEDGER ENTRIES:

Dr Equipment A/c Cr
Date	Particulars	Amount	Date	Particulars	Amount
2-Jan	Amanda	N350

Dr Amanda's A/c Cr
Date	Particulars	Amount	Date	Particulars	Amount
			2-Jan	Equipment	N350

2. Correction of Errors

a. On January 10th Sales of Goods N700 to Okon were posted to Okonkwo.

Date	Particulars	F	Dr	Cr
10-Jan	Okon		N700
	Okonkwo			N700
	(Sales entered in the wrong a/c now corrected.)

LEDGER ENTRIES:

Dr Okon's A/c Cr
Date	Particulars	Amount	Date	Particulars	Amount
10-Jan	Okonkwo	N700

Dr Okonkwo's A/c Cr
Date	Particulars	Amount	Date	Particulars	Amount
			10-Jan	Okon	N700

b. On January 15th Goods Purchased from Olotu N500 were entered into Otto's Account.

Date	Particulars	F	Dr	Cr
15-Jan	Olotu			N500
	Otto		N500
	(Goods Purchased entered into the wrong a/c now corrected.)

LEDGER ENTRIES:

Dr Olotu's A/c Cr
Date	Particulars	Amount	Date	Particulars	Amount
			15-Jan	Otto	N500

Dr Otto's A/c Cr
Date	Particulars	Amount	Date	Particulars	Amount
15-Jan	Olotu	N500

3. Double Entry Transaction

a. On January 8th Cash sales N1, 500.

Date	Particulars	F	Dr	Cr
8-Jan	Sales			N1, 500
	Cash		N1, 500
	(Goods sold for Cash.)

LEDGER ENTRIES:

Dr Sales A/c Cr
Date	Particulars	Amount	Date	Particulars	Amount
			8-Jan	Cash	N1, 500

Dr Cash A/c Cr
Date	Particulars	Amount	Date	Particulars	Amount
8-Jan	Sales	N1, 500

b. On January 17th Paid Salaries N2, 000 cash.

Date	Particulars	F	Dr	Cr
17-Jan	Salaries		N2, 000
	Cash			N2, 000
	(Salaries paid with Cash.)

LEDGER ENTRIES:

Dr Salaries A/c Cr
Date	Particulars	Amount	Date	Particulars	Amount
17-Jan	Cash	N2, 000

Dr Cash A/c Cr
Date	Particulars	Amount	Date	Particulars	Amount
			17-Jan	Salaries	N2, 000

4. Transfer of Item between Two Accounts

a. On January 21st Mr Esan a debtor could not pay N300 owed to us but he bought equipments for full settlement of his debt.

Date	Particulars	F	Dr	Cr
21-Jan	Esan			N300
	Equipment		N300
	(Settlement of Debt with Equipment.)

LEDGER ENTRIES:

Dr Esan's A/c Cr
Date	Particulars	Amount	Date	Particulars	Amount
			21-Jan	Equipment	N300

Dr Equipment A/c Cr
Date	Particulars	Amount	Date	Particulars	Amount
21-Jan	Esan	N300

5. Purchases of Assets on Credit

a. On January 25th Purchases of Motor Car N1, 550 from Okonkwo on Credit.

Date	Particulars	F	Dr	Cr
25-Jan	Motor Car		N1, 550
	Okonkwo			N1, 550
	(Purchase of Motor Car from Okonkwo on Credit.)

LEDGER ENTRIES:

Dr Motor Car A/c Cr
Date	Particulars	Amount	Date	Particulars	Amount
25-Jan	Okonkwo	N1, 550

Dr Okonkwo's A/c Cr
Date	Particulars	Amount	Date	Particulars	Amount
			25-Jan	Motor Car	N1, 550

6. For Recording Opening Entries

a. On January 30th Assets: Land & Building N500

Furniture & Fitting N6, 000

Plant & Machinery N1, 735

Cash N880

Bank N220

Debtors N550

Liabilities: Bills Payable N4, 500

Loan N1, 500

Creditors N3, 050

Date	Particulars	F	Dr	Cr
30-Jan	Land & Building		N5, 000
	Furniture & Fitting		N6, 000
	Motor Van		N950
	Plant & Machinery		N1, 735
	Cash		N880
	Bank		N220
	Debtors		N550
	Bills Payable			N4, 500
	Loans			N1, 500
	Creditors			N3, 050
	Capital			N6, 285
			15, 335	15, 335

LEDGER ENTRIES:

Dr Land & Building's A/c Cr
Date	Particulars	Amount	Date	Particulars	Amount
30-Jan	Bal b/f	N5, 000

Dr Furniture & Fitting's A/c Cr
Date	Particulars	Amount	Date	Particulars	Amount
30-Jan	Bal b/f	N6, 000

Dr Motor Van A/c Cr
Date	Particulars	Amount	Date	Particulars	Amount
30-Jan	Bal b/f	N950

Dr Plant & Machinery's A/c Cr
Date	Particulars	Amount	Date	Particulars	Amount
30-Jan	Bal b/f	N1, 735

Dr Cash Book A/c Cr
Date	Particulars	Amount	Date	Particulars	Amount
30-Jan	Bal b/f	N880
		N220
		N1, 100

Dr Debtors' A/c Cr
Date	Particulars	Amount	Date	Particulars	Amount
30-Jan	Bal b/f	N550

Dr Bills Payable A/c Cr
Date	Particulars	Amount	Date	Particulars	Amount
			30-Jan	Bal b/f	N4, 500

Dr Loan A/c Cr
Date	Particulars	Amount	Date	Particulars	Amount
			30-Jan	Bal b/f	N1, 500

Dr Creditor's A/c Cr
Date	Particulars	Amount	Date	Particulars	Amount
			30-Jan	Bal b/f	N3, 050

Dr Capital A/c Cr
Date	Particulars	Amount	Date	Particulars	Amount
			30-Jan	Bal b/f	N6, 285

NOTE: PARTS OF THIS POST WERE CULLED FROM TONAD ESSENTIAL FINANCIAL ACCOUNTING FOR SENIOR SECONDARY SCHOOLS BY O.A LONGE & R.A KAZEEM. WE AT EDU-MADE-EASY RESPECT THIS CRAFT TOO MUCH TO DENY ITS ORIGIN. THANK YOU.

This brings us to the end of Today's Session. Hope this was very helpful to you, leave a comment of what you think of this Tutorial and of your Questions below. Have a Blessed Day and Remember You are Amazing. God Bless You.

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