Form of a Journal: The form of a Journal is as follows:
| Date (1) | Particular (2) | L.F. (3) | Dr. Amount ₹ (4) | Cr. Amount ₹ (5) |
1. Date: In this column, the transaction date is written.
2. Particular: In this column, two aspects of transactions are recorded, i.e., the name of the two accounts affected by the transactions. The name of the account to be debited is followed by the word ‘Dr.’ written close of the left-hand margin line, while the name of the account to be credited precede by the word ‘To’ is written in the next line, a little to the right. Narration, i.e., a brief description of the transaction is also written.
3. Ledger Folio: In this column, the number of the Ledger page is written to which the amount is posted.
4. Debit Amount: In this column, the amount credited is written.
5. Credit Amount: In this column, the amount credited is written.
Steps in Journalising
Steps involved in Journalising are:
1. Ascertain the accounts that are affected by a transaction.
2. Ascertain the nature of the accounts affected.
3. Ascertain the account to be debited and credited by applying the rules of debit and credit.
Let us, at this point, recapitulate the rules of debit and credit.
Rules of Debit and Credit
4. Ascertain the amount by which the accounts are to be debited and credited.
5. Record the date and month of the transaction in the ‘Date’ column and the year at the top.
6. Record in the ‘Particulars’ column the name of the account to be debited. Along with the name of the account, the abbreviation ‘Dr.’ also should be written in the same line against the name of the account. Write the amount to be debited in the ‘Debit Amount’ column.
7. Record in the ‘Particulars’ column the name of the account to be credited. The name of the account to be credited should be written in the next line preceeded by the word ‘To’. The word ‘To’ is written towards the right after leaving a few spaces. Write the amount to be credited in the ‘Credit Amount’ column.
8. Record a brief description of the transaction starting from the next line in the ‘Particulars’ column. This brief description of the transaction is called narration.
9. Draw a line across the ‘Particulars’ column to separate one Journal entry from the other.
Journal column will become clear from an imaginary entry given below:
*53 is the folio/page in the Ledger which is Cash Account where the posting of ₹ 2,500 will be found; 37 is the folio/page in the Ledger which is Mohan’s Account where the posting of ₹ 2,500 will be found.
This is very good website for getting the Right Knowledge at one place in the filed of commerce specialized in Account.