Terming on a general note, a journal is a record of daily transactions that are notified in books, and framed in debit and credit formats. Following specifications of accounting, this process of recording is known as journalising.

Detailing of a journal:

Since this is a chronological presentation of business transactions, so certain details need to be checked in a proper way, and a format needs to be maintained.

• Firstly, Date on which a particular transaction has taken place has to be mentioned.
• Secondly, Particulars, regarding a person’s account has to be given. This includes name of the person whose account is to be debited followed by the person whose account is to be credited. A brief idea about transaction is to be placed in regards to this.
• Thirdly, Ledger Folio,is that page number against which this entry is to be posted.
• Fourth, Debit is that account from which money is to be debited. ‘Dr’ has to be placed against the amount.
• Finally, Credit is the account in which money is to be credited, with a ‘Cr’ posted against that amount.

Process for journalising:

There are certain factors that have to be taken care of while carrying on with this journalising process.

There are 3 types of Accounts:

• Personal
• Real
• Nominal

All these have to be placed at left hand corner of a journal.

In the middle section and extreme left hand section rules for debiting and crediting is to be placed.

Against, Personal Account, Debit the receiver and Credit the giver is to be placed.

Along with Real Account, Debit what comes in and Credit what goes out is to be placed.

Finally against Nominal Account, Debit all expenses and losses, and credit all income and profits.

Based on these aspects final detailing of a journal is to be done.

Links of Previous Main Topic:-

• Preparation of final accounts
• Recording of business transaction basis of accounting
• Single entry system of bookkeeping
• Double entry system of bookkeeping
• Classification of accounts
• Rules of double entry or accounting rules

Links of Next Financial Accounting Topics:-

• Journal
• Ledger
• Trial balance
• Income
• Expenditure
• Assets
• Liabilities
• Final accounts
• Trading account
• Profit and loss account
• Balance sheet
• Adjustments in financial accounting

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