What are the steps involved in journalising?

Asked by Topperlearning User | 14th Jun, 2016, 05:30: PM

Expert Answer:

Steps in Journalising:

  1. Determine the two accounts involved in the transaction
  2. Classify the accounts into assets, liabilities, capital, expenses and incomes
  3. Apply the rules of debit and credit for the above two accounts
  4. Identify which account is to be debited and credited
  5. Record the date of transaction, particulars of transaction and its narration. Against this, the debit and credit amount is written.
  6. Write the narration within brackets in the next line in the particulars column
  7. Draw a line across the particulars column to divide one journal entry from the other.

Answered by  | 14th Jun, 2016, 07:30: PM