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.
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:
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.
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