Techniques for Journalizing

                                 Techniques for journalizing

How a transaction is recorded in journal, is has been discussed : Suppose the transaction is ---

purchased furniture M.Asif on 10.1.05 for Rs. 8000.

Here furniture A/c is debited and Mr.Asif A/c is credited.

                                       JOURNAL                                                  

Date                         Details                                    Dr.            Cr.

                                                                          Amount        Amount

                                                                                                            

2005

jan. 10           Furniture A/c                 Dr.        8,000

                     

                       Mr. Asif A/c                                                   8,000

          

                      (Being cost of furniture 

                                      purchased)

                                                                                                            

Now the various columns of journal are explained in details below:

1. DATE: 

The date of transaction is written in this column in two lines- in the first line, the year and in the second line, first the name of the month and thereafter the actual date

2. DETAILS:

In this column the name of two concerned accounts are written in two consecutive lines- in the first line the name of accounts debited and in the second line the names of accounts credited. While the name of the account debited always placed close to the left-hand margin line, the name of account credited is commenced a short distance away from the margin line. This arrangement will show you which account is debited and which account is credited.  In the third line Narration is written usually within a bracket. According to traditions, narration is written starting with the word "Being".But modern practice is not to use this word.

3. L.F.(LEDGER FOLIO):

The page number of the ledger where the two concerned accounts have been posted, are written in this column against the name f each account 

4. AMOUNT:

The debit amount is written in the first "Amount " column against the  name of account debited and credited amount in the second "Amount" column against the name of account credited.