Journal Proper

Journal Proper

We have already discussed, how most of the common transactions in  business are originally recorded: the purchases, sales and return of goods, and the payment and receipt of cash. Now we turn to a consideration of some of the less common items which occur, not every day, but only a few times in a year. These items or transactions are usually recorded in the "Journal Proper", a Day Book which has been in use since the Middle Ages.

As we know, in special journals, transactions of special nature are recorded, e.g. credit purchase of goods in Purchase Journal, credit sales of goods in Sales Journal, return to the supplier in Return Outward Journal, return from customers in Return Inward Journal etc. But there are some transactions which cannot be recorded in any Special Journal, So it will be recorded in Proper Journal or General Journal .

For Example:

Furniture is purchased from 'City Furniture Store' for Rs. 10000 on credit. 

We cannot record this transaction in any special journal, so it will be recorded in proper journal. In the same way good are taken away by the owner of the business for his personal use worth Rs.2000. This transaction cannot be recorded in any Special  Journal , So it will recorded in Proper Journal.

The book of account where all the transactions for which there are no Special Journal are primarily recorded is known as Journal Proper Or General Journal.

The transactions which are recorded in the Proper Journal may be divided into following groups;

1. Opening Entries 
2. Closing Entries
3. Adjustment Entries
4. Rectifying Entries 
5. Transfer Entries 
6. Rare Transaction or Residuary Entries

The above mentioned groups of entries are discussed in details below:

Opening Entries:

At the beginning of the every year, new books of accounts are opened. The closing balance of all accounts (Asset A/c, Liability A/c and Capital A/c) will be the opening balance of the new year. Entries are necessary to bring these balances in the books of accounts of the new year. These entries are known as Opening Entries, and are passed Proper Journal.

Closing Entries:

At the end of every accounting period, all accounts relating to Expenses and Revenues are closed by transferring their balances to Trading and Profit and Loss Account.Entries are necessary for such transfer, which are known as Closing Entries.

Adjustment Entries:

At the end of the accounting period, when  Final Accounts are prepared, some items of Revenue and expenses require adjustment e.g. outstanding expenses, prepaid expenses, Accrued Revenue, depreciation etc. Entries are necessary to record these adjustment are known as Adjustment Entries.

Rectifying Entries:

If there is any error in the books of account, it must be rectified . But errors are not rectified by erasing the wrong figures. All errors are rectified by passing fresh journal entries. These entries are known as Rectification Entries.

Rare Transaction Entries:

All the remaining transactions except those mentioned above, which cannot be recorded in any special journal are known as Rare Transaction Entries, and are recorded in Journal Proper.