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Dear Teachers,

These slides have been prepared based on the NCERT syllabus to support you in teaching Plus One and Plus Two Accountancy and Computerised Accounting.

Please review and verify the content before using it in your classrooms. If you find any errors or have feedback, please let me know.

Mujeeb Rahiman C

HSST Commerce

GHSS Pattikkad

Malappuram Dt.

✉️ mujeebchemmala@gmail.com

9995983075 �

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Chapter - 4

Recording of Transactions - II

Journal Proper

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Journal Proper

A book maintained to record transactions, which do not find place in special journals, is known as Journal Proper or Journal Residual.

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Format of Journal Proper

Journal

Date

Particulars

L.F.

Debit Amount

Credit Amount

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Following transactions are recorded in this journal

1. Opening Entry

2. Adjustment Entries

3. Rectification entries

4. Transfer entries

5. Other entries

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1. Opening Entry

In order to open new set of books in the beginning of new accounting year and record therein opening balances of assets, liabilities and capital, the opening entry is made in the journal

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2. Adjustment Entries

In order to update ledger account on accrual basis, such entries are made at the end of the accounting period. Such as Rent outstanding, Prepaid insurance, Commission received in advance and depreciation.

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3. Rectification entries

To rectify errors in recording transactions in the books of original entry and their posting to ledger accounts this journal is used.

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4. Transfer entries

Accounts relating to operation of business such as Sales, Purchases, Income, Gains and Expenses, etc. are closed at the end of the year and their balances are transferred to Trading and Profit & Loss account by recording the journal entries. These are also called closing entries.

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5. Other entries

(iv) Loss of goods by fire/theft/spoilage etc..

(i) Purchase/sale of Fixed Assets

(ii) Goods withdrawn by the owner for personal use.

(iii) Goods distributed as samples for sales promotion.

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Prepare proper subsidiary books for the following transactions

Purchased Machinery from ABC Ltd. for Rs. 25000/-

01/01/2017

31/12/2017

31/12/2017

Depreciate Machinery @ 10%

Salary outstanding Rs. 1000/-

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Journal

Date

Particulars

L.F.

Debit Amount

Credit Amount

01/01/2017

Machinery Account

Dr.

25000

To ABC Ltd. Account

25000

(Credit purchase of Machinery)

Purchased Machinery from ABC Ltd. for Rs. 25000/-

01/01/2017

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Journal

Date

Particulars

L.F.

Debit Amount

Credit Amount

01/01/2017

Machinery Account

Dr.

25000

To ABC Ltd. Account

25000

(Credit purchase of Machinery)

31/12/2017

Depreciation Account

Dr.

2500

To Machinery Account

2500

(Depreciation on Machinery)

31/12/2017

Depreciate Machinery @ 10%

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Journal

Date

Particulars

L.F.

Debit Amount

Credit Amount

01/01/2017

Machinery Account

Dr.

25000

To ABC Ltd. Account

25000

(Credit purchase of Machinery)

31/12/2017

Depreciation Account

Dr.

2500

To Machinery Account

2500

(Depreciation on Machinery)

31/12/2017

Salary Account

Dr.

1000

To Salary Outstanding Account

1000

(Outstanding salary)

31/12/2017

Salary outstanding Rs. 1000/-

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Journal

Date

Particulars

L.F.

Debit Amount

Credit Amount

01/01/2017

Machinery Account

Dr.

25000

To ABC Ltd. Account

25000

(Credit purchase of Machinery)

31/12/2017

Depreciation Account

Dr.

2500

To Machinery Account

2500

(Depreciation on Machinery)

31/12/2017

Salary Account

Dr.

1000

To Salary Outstanding Account

1000

(Outstanding salary)

28500

28500

Total

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Special Journals

1) Cash Book

2) Purchases Book

3) Purchases Return (Return Outwards) Book

4) Sales Book

5) Sales Return (Return Inwards) Book

6) Journal Proper

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MUJEEB RAHIMAN C

HSST COMMERCE

GHSS PATTIKKAD

MALAPPURAM DT

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