Journal Entry

The journal entry is the process of recording of financial (fiscal) information (chosen generally from a journal (day book) coupon) relating to business concern transactions in a journal such that the debits are equal to credits in journal. The journal entries provide an audited account trail and a means of analyzing the consequences of the transactions on an organization's financial status. Ascertain as well journalizing method.

Each accounting system transactions are entered through journal (day book) entries that show accounting figures, numbers and whether those accounts are recorded in credit or debit side of accountings.

The journal entries are whenever we made a business concern transaction we have to pass an accounting entry relating to that in the related ledger book is known as journal entry in the accounts.

The entering of financial data (claimed generally from a journal verifier) relating to business concern transactions in a journal such that the debits equal credits (liabilities). The journal entries allow an inspect trail and a means of analyzing the issues of the transactions on a system of financial situation.

Journal Entry Example

Journalize the following transaction:

1. Charged depreciation on furniture Rs. 300.
2. Rent due, but not paid Rs. 2000.
3. Commodities given as charity Rs.500.
4. Written off bad debts Rs. 200.
5. Recovered the bad debts Rs. 100.
6. Commodities distributed as samples Rs. 50.
7. Commodities withdrawn by the proprietor for his personal use Rs. 150.
8. Loss of commodities by fire Rs.250.
9. Loss of cash by the theft Rs.600.
10. Received advance from Ramesh for supply of commodities Rs.1000.
11. Advance given to a supplier for the supply of commodities Rs. 2000.

Answer:

Next Chapters

Single Entry Accounting	Debit	Depreciation	Dividends in Accounting
Double Entry Accounting	Cash Book	Discount	Assets
Ledger in Accounting	Final Accounts	Liability	Debenture
Journal Entry	National Income	Trial Balance	Payroll Accounting
Drawings in Accounting	Petty Cash Book	International Trade	Admission of a Partner
Annuities	Book Keeping	Bill of Exchange