Journal
Purpose and format
The journal is the book of original entry. It records transactions chronologically with columns for date, particulars, ledger folio, debit and credit. Write the debited account first and put “Dr.” after it; write the credited account below with “To” before it and indent it. A narration briefly explains the entry. Journal entries include simple, compound, opening, adjusting, closing and transfer entries. Before writing, identify the two accounts, classify them, apply the rule and check that debit equals credit.
Worked example
Sold goods of ₹20,000 at 10% trade discount to Amit and received ₹10,000 immediately. Net invoice value is ₹18,000. Entry: Cash A/c Dr ₹10,000; Amit's A/c Dr ₹8,000; To Sales A/c ₹18,000. Narration: goods sold at trade discount, part cash received. Cash comes in, so Cash is debited; Amit becomes a debtor, so his personal account is debited; sales income is credited. Trade discount is deducted before recording and is not shown as a separate account.
Traps that cost marks
Do not record trade discount separately; record only the net amount. Do not omit narration in HSC answers. A credit purchase is Purchases A/c Dr and Creditor Cr; a credit sale is Debtor Dr and Sales Cr. Cash withdrawn by the proprietor is Drawings Dr and Cash Cr, not salary. Do not use “To Cash” when cash is received; cash is debited. Keep dates and L.F. column complete.