What are the steps involved in journalising?
Asked by Topperlearning User | 14th Jun, 2016, 05:30: PM
Steps in Journalising:
- Determine the two accounts involved in the transaction
- Classify the accounts into assets, liabilities, capital, expenses and incomes
- Apply the rules of debit and credit for the above two accounts
- Identify which account is to be debited and credited
- Record the date of transaction, particulars of transaction and its narration. Against this, the debit and credit amount is written.
- Write the narration within brackets in the next line in the particulars column
- Draw a line across the particulars column to divide one journal entry from the other.
Answered by | 14th Jun, 2016, 07:30: PM
- Define journal and journalising.
- Give the format of a journal and explain in detail.
- Explain bad debts in brief. Give an example.
- Write down the limitations of a journal.
- Is journal a book of original entry? Explain
- What do you mean by discount? Explain the types of discount.
- Rebello purchased from Rs.100 each on which he is given 20% Trade Discount. He is further given 2% Cash Discount as he made payment for the purchases immediately. Calculate the amount that Rebello will debit in purchases account. Pass necessary journal entries for the following transaction.
- Journalise the following transactions: Date Rs. 2016 March 31 Stock at the end of the year 40,000 Salaries due to staff 8,500 Sold goods to Mohan 20,000 Purchased goods from Radha 10,000 Withdrawn from bank for private use 1,000 Placed in fixed Deposit Account at bank by transfer from current account. 6,000 Goods given as charity 5,000
- Journalise the following transactions : 2016 Rs. May 2 Paid interest to Loan 4,000 May 3 Ramesh who owed Rs.3,000 has become insolvent. He pays 50 paise in rupee in full settlement May 4 A cheque received from Ranjan deposited into bank was returned dishonored 6,300 May 5 Wood used for making office furniture 5,000 May 21 Due from Rama are bad debts 600 May 25 Purchased building and issued cheque 4,300
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