Journal Entry Assignment Help
What is a Journal?
A journal is the most primary step of recording a transaction and looking at the dual effect of a transaction on two accounts. In other words “A journal is the primary book of accounts in which transactions are first recorded in a chorological order that is as they are entered into.” It is only through journal that it becomes even possible to review the effect on any transaction on the business.
Some important terms in Journals:
- Journal entry - entry recorded in journal.
- Journalizing - process of recording a transaction in journal.
- Posting - transfer of entry to a ledger account.
- Ledger - it is a book containing ledger accounts.
- Opening entry - it is the first entry passed in the journal book, accounting for closing balances of the last year.
Components of Journal
- Date: date of transaction is entered into this column.
- Particulars: in this column the journal entry is recorded showing the double effect of a business transaction, the accounts affected by the transaction. The debit of an account is often signified by the usage of the word “by..” and the credit of an account is signified by the usage of the word “ to..” .
- Ledger Folio: in this column, the number of ledger papers is written to which the amount is posted in ledger.
- Debit Account: the amount to be debited is entered into this column in front of the account being debited.
- Credit Account: the amount to be credited is entered into this column in front of the account being credited.
Characteristics of a Journal
- Contains day to day transactions.
- Transactions recorded in a chronological order.
- It is a book original entry as the transactions are first recorded here and then posted in the ledger.
- It utilizes the double entry book keeping system to record transactions. It bifurcates transactions into debit and credit according to the functioning and nature of transaction.
- Shows complete detail of a transaction in one entry.
- Journalizing of entries in journal is called recording journal entry.
Simple and Compound Journal Entries
- Simple journal entry: in this type only two accounts are affected by a transaction that is one is debited and one is credited with equal amount.
- Compound journal entry: in this type of entry in which two or more accounts are debited and one or more accounts are credited or vice versa.
Now let’s understand how to record journal entries in a Journal or the process of Journalizing through an Illustration.
From the following transactions, pass the necessary Journal entries in the books of Daniels & Co.
|Jan 1||Commencement of business||80000|
|Feb 5||Purchase of goods||25000|
|Feb 20||Sold goods||30000|
|May 10||Purchased goods from Sandy||18000|
|May 25||Sold goods to Wilson||40000|
|June 15||Cash give to Sandy||18000|
|June 28||Cash received from Wilson||40000|
|Aug 2||Purchased goods for cash from Sandy||19000|
|Aug 29||Withdrew for personal use||1500|
|Oct 10||Purchased goods for Emma||17000|
|Nov 20||Cash paid to Emma|
Discount allowed by them
|Dec 31||Paid salaries||12000|
|Jan 1||Cash a/c|
To Capital a/c
(being cash bought in for capital)
|Feb 5||Purchases a/c|
To cash a/c
(being goods purchased for cash)
|Feb 20||Cash a/c|
To Sales a/c
(being sales of goods for cash)
|May 10||Purchases a/c|
To Sandy a/c
( Being purchase of goods from Sandy )
|May 25||Wilson a/c|
To Sales a/c
(Being goods sold to Wilson )
|June 15||Sandy a/c|
To Cash a/c
(Being cash paid to Sandy)
|June 28||Cash a/c|
To Wilson a/c
(Being cash received from Wilson )
|Aug 2||Purchase a/c|
To Cash a/c
(Being purchase of goods for Cash)
|Aug 29||Drawings a/c|
To Cash a/c
(Being cash withdrawn for personal use)
|Oct 10||Purchase a/c|
To Emma a/c
(Being goods purchased from Emma )
|Nov 20||Emma a/c|
To Cash a/c
(Being Cash paid to the extent of $16800 to Emma and he allowed discount of $200)
|Dec 31||Salaries a/c|
To Cash a/c
(Being salaries paid)
As we arefamiliar with the practice of closing of books of accounts at the end of every accounting period and starting the new period with a set of new books of accounts. Closing balances of last year become the opening balance of the current year. Therefore, the first entry is the carrying over of last year’s balance into the new year through an opening entry. “While passing an opening entry, all asset accounts are debited and Liabilities accounts are credited.”
Advantages of a Journal
1. Reduces the Possibility of Error: The possibility of errors is reduced as the amounts to be debited and credited are written side by side and the two can be compared to see if they are equal. If they are recorded directly it may be have errors as wrong amounts may be written wrong.
2. Provides an explanation for transactions: the narration accompanying the journal entry helps to understand the entry better later.
3. Provides chronological record of all transactions: as we see that journal entries are posted in a chronological order hence journal enters records permanently as they happen according to time.
Journal is the most basic and important concept of accounting. It deals with recording which is the first and initial step towards accounting. It is a fundamental part of accounting and helps check mathematical errors and glitches. To solve the questions of trial Journal without the knowledge of treating a transaction and having no any guidance gets very hard to solve and a tedious task to complete your assignments. This is bound to cause mistake without cleared concepts of the treatment of different aspects of business transaction and how to convert raw data into final one. Writing assignment, solving questions of journal becomes a hard task if you don’t have time to understand the concepts as yet and have a lot of other tasks. assignmenthippo.com help you out with all kinds of assignments. We solve your accountancy questions, give you tutorials so that you can understand concepts, etc. we will provide you with in depth knowledge about any kind of topic be it related to any topic, field, stream, etc. myassignmenthelp has the best tutors for all subjects who are well qualified and knowledgeable and master or PhD in their respective fields. They have years of experience teaching students and are well versed with the art of writing the perfect assignments being themselves in the place of a teacher. so and submit us your assignments and we will complete them for you in the deadline set by you. we areavailable 24/7 at your service.