ACCOUNTING JOURNALS

The books of accounts are classified according  to the functions they perfume.  Basically they are  2 groupings:

1.      books of  original (or  prime)entry of journal and 

2.      the  ledger

journal proper is meant for recording of such transactions (PRIOR TO THE TRANSFER TO THE LEDGER ) WHICH CAN NOT  BE CONVENIENTLY recorded in   any of the special  journals.

The  journal proper is therefore, a form of diary  into which daily transactions of a business are first  recorded  unclear the double entry system.  It indicates account to be debited and account

to be credited for such transactions. As a  book of a original entry, the  journal proper does not   replace but precedes the ledger. The  process of  recording   transactions in  journal is termed journalizing  typical journal proper contain five columns as follows 

1.      The  date columns for recording the date of the transactions. 

2.      The  particulars  column is which details of the accounts to  be debited or credited are recorded.  This column  also contains as explanatory  notes or marathon which explains the nature or reason for the individual transaction  

3.      The folio : ledger  page

4.      The debit column:  which  records the amount  be   debited

5.      The credit column  ; which records the amount to be credited 

Illustration:

Eze  started a business  with a capital of N1000,00 on January  2011. here the two accounts involved  are:

-         ezes  account,  and

-         cash  amount 

Journal

Date	Particulars	Folio	Debit N	Credit N
JAN 1, 2011	cash Account		1,000,00
	capital account			1,00,000
	(being commencement of  business on that  date)

ILLUSTRATION: UGOCHRUKWU, WHO  has been  in  business made the following transaction  in  2011

Feb 2  purchased  2 sets of office furniture  from emmer  and Co  @ N2000 each on credit

Feb 6  sold on credit goods  worth N 5000 to  Kingsley, but debited kingdoms account with the amount  in error.

NB:   this illustration  demonstrated the use of the journal  proper to record the purchase of  fixed assets on credit  and correction of book keeping errors.

Journal

Date	Particulars	Folio	Debit N	Credit N
Feb 2	office  furniture  Emma and co		4000
	(being correction of error in posting   to Kingsley’s account )			14000
Feb 6	Kingsley		5000
	Kindom			5000
	(Being correction  of error in posting   to Kingsleys account)

Illustration: (using of journal proper for  opening  statements of  assets  and liabilities)

Ekuma  has the following balances in  his  record  as at January 2, 2011. enter the balances in  Ekumas  appropriate book of prime entry preparatory to their   being  transferred  to  the ledger

Office equipment	90,000
Furniture’s & fittings	60,000
Cash in hand	20,000
Cash at bank	40,000
Debtors: C Nnworie	10,000
A. eze Nzekwe	8000
Creditor A. Nzekwe	20,000

Solution

Journal 

Date	Particulars	Folio	Debit N	Credit N
Jan 2011	Office  equipment		90,000
	Furnitures &  fittings		60,000
	Cash  in hand		20,000
	Cash  at bank		40,000
	Sundry debtors C. nworie		10,000
	A eze		8000
	Creditors: S nzekwwe			20,000
	Capital (difference)			208,000
	(being opening assets &  licts as at that date

Illustrations :  (for closing entries)

show  the journal entries  requested  to  transfer the  following balances  from the  respective nominal accounts to the trading, profit  &  loss accounts:

Jan  31  sales account: balance b/d  n10,000(cr)

Rent account: balance b/d  N 5000(dr)

Advertisement account: balance b/d  n2,000(dr)

Discount allowed account bal b/d n800(dr)

Discount received account bal.  B/d n1500 cr

solution:

Journal

Date	Particulars	Folio	Debit N	Credit N
Jan 31	Sales		10,000
	Trading			10,000
	(being balanced  transferred to trading  a/c )
	Profit & loss  account		5000
	Rent a/c			5000
	Being  balanced transferred to P &  L a/c
	Profit  & loss a/c		2000
	Advertisement a/c			2000
	Being  balanced transferred to P &  L a/c
	Profit  & loss a/c		800
	Discount  received a/c			800
	Being  balanced transferred to P &  L a/c
	Discount  received a/c		1500
	Profit  & loss  A/C			1500
	Being  balanced transferred to P &  L a/c

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