The book in which transactions are written systematically for the first time is known as journal . The process of recording transactions in journal is treated to be as journalizing. There are five columns in journal entries as follows: Date, Particulars, Lf, Dr Amount , CR Amount . Lf stands for ledger folio. DR- WITHDRAWL AND CR-CREDIT OR DEPOSIT. This is based on double entry system (dual aspect).Another name of journal is books of original entry. See the examples for journal entries- .Journalizing the following transactions :
1. Started business with capital rs1000000.
2. Purchased goods from Mohan rs100.
3. Sold goods to Mohan rs1000.
4. Rent paid Rs1ooo.
5. Commission received rs100.
6. Withdrew cash for private use.
7. Withdrew goods for personal use.
8. Purchased furniture for cash Rs 1ooo.
9. Goods worth Rs 2000 were destroyed by fire.
10. Returned defective goods worth 1000 to Mohan.
11. withdrew from bank for office use rs1000.
12. Withdrew from bank for personal use Rs 10000.
|Date||PARTICULARS||LF||Dr amount||Cr amount|
|1.||Cash A/C- DrTO CAPITAL A/C||1000000||1oooooo|
|2.||Purchases A/c- DrTo Mohan A/c||100||100|
|3.||Mohan A/C- DrTO Sales A/C||1000||1000|
|4.||Rent A/C- DrTo cash A/C||1000||1000|
|5.||Cash A/C- DrTo commission A/C||100|| |
|6.||Drawings A/C— DrTo Cash A/C||NIL||NIL|
|7.||Drawings A/C- DrTo purchases||NIL||NIL|
|8.||Furniture A/C— DrTO cash||1000||1000|
|9.||Loss by fire A/c – DrTo purchases||2000||2000|
|10.||Mohan A/C – DrTo purchases return||1000||1000|
|11.||Cash A/C- DrTo bank||1000||1000|
|12.||Drawings A/c – DrTO Cash or Bank A/C||10000||10000|
NOTES- The total of all debits must be equal to the total of all credits.