Introduction: –As the transactions are recorded in the Journal first, it is also known as Book of Original Entry or Book of Prime Entry or Subsidiary Books or Journal. Business Transactions are recorded in the books of accounts. The book which records these business transactions first is known as Journal. Business transactions are recorded in the books of account as they occur i.e. date wise. This date wise recording of business transaction in the books of accounts is known as chronological order.
Meaning:- Transactions are recorded in the books of accounts on the basis of source documents. Transactions are recorded in the books of account as per Double Entry System. Under double entry system, every debit has a corresponding credit. The word ‘Journal” is derived from the French word “Jour” which mean a ‘Day’ thus journal means a daily record of business transactions in the books of accounts as the entries are first recorded in the Journal in a chronological order i.e. the order of their occurrence.
Definition:- “A book which is meant for recording business transaction in a chronological order.
Specimen of Journal:-
- The specimen of ruling of journal is as follows:-
- Date: It indicates the year, month and day on which the transaction has taken place.
- Particulars: It states the name which is to be debited & name of account which is to be credited. A brief explanation of the transaction is written in bracket in particulars column after accounts which are debited & credited, this is known as narration.
- L.F.: It means Ledger Folio i.e. page number on which the name of the accounts is written in the Ledger.
- Debit: Debit means amount to be debited.
- Credit: Credit means amount to be credited.
- Types of Journal:
- General Journal: Used to record general transactions.
- Special Journal: Used to record transactions as per need or separations.These books are also called as subsidiary books & include the following books a) Sale Book: Used to record all credit sale transaction only. b) Purchase Book: Used to record all credit purchase transactions only. c) Purchase Return Book: Used to record purchase return transactions. d) Sales Return Book: Used to record sales return transactions. e) Bills Receivable Book: Used to record details of bill receivables. f) Bills Payable Book: Used to record details of bill payables. g) Cash Book: Used to record all cash transactions only.