What is Journal and Format of Journal :

 Journal entries and Format of Journal :

Firstly , I will tell  you about the pattern of Journal. In Journal, we will have total five columns. First one is Date column. Second one is Particular or Description column. Third one is Reference column . fourth one is Debit and the last column is Credit column.

Format :

Write in center Journal General and underline it :

 

Date column :

In this column, we will write the date of that entry which we are recorded in journal. Date is very essential or important part in recording the entries  so that we can able to know that at this or that date how much we received, what is the amount of sales etc.  We record transactions in chronological order which means that we record transactions Date wise .

Particulars or Description :

We write the names of accounts that which account is debited and which one is credited. Firstly we will  write debit  entry then credit entry. In accounting elements we have specific names of accounts. For instance Assets is an element in which we will have different names of accounts. In Assets elements we will have cash account , furniture account. Building account and many others. So , I hope the concept of account is cleared.

Like supposed you started a business of RS/- 50,000 on March 2, 2021.

So, in this entry our Cash is an assets which is increased and our capital is also increased. Now, whenever our assets increased, it will be debited and whenever our capital is increased , it will be credited.  Firstly we will write debit entry then credit entry.

Cash Account                                Debit with 50,000

        Capital Account                    Credit with 50,000

 

There are two method of writing these entries. First one which is showed above that in this method after writing the debit entry then we will intend or leave some space then we will write credit entry . the second method is that write TO with credit entry so that we can be able to differentiate between debit and credit entries.

Cash Account                                                Debit with 50,000

To Capital Account                                       Credit with 50,000

 

Reference Column  or RF :

In reference column, we will write the number of ledgers so that we can able to find out or locate the ledger of that specific account which we wanted or needed . We will have different numbers for different Accounts. For instance Cash Account has a 234 number, Capital Account has 235 number etc.  The process or method of giving which number to which accounts is also depend upon companies. Every organization or corporations have different numbers.

 

Debit Column:

In debit column, we will record the amount of only debit entries. Like for example  Cash Account is debited with RS/-50,000. So , we will record 50,000 only for cash account.

 

Credit Column :

In credit column, we will record the amount of only  credit entries. Like for example  Capital Account is credited with RS/-50,000. So , we will record 50,000 only for capital account.