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$3,000 10 Purchased furniture $2,400 11 Sold goods $3,900 15 Sold goods on credit to D $2,250 20 Paid salaries $960 25 Received commission $75 26 Returned goods to S & CoPurchases for cash may also be frequent but those are recorded in cash payments journal instead of purchases journalEntry may be of the following two types:When the company purchased the vehicle, it spent cash and received a vehicle30: Paid salary for the month of November $7,500 Required: Record the above transactions in a general journalSince transactions are first of all recorded in journal, so it is called book of original entry or prime entry or primary entry or preliminary entry, or first entryThis book is known as journalBonds Payable 21Capital account is in fact the personal account of the proprietor
After identifying the accounts involved in the transaction and deciding upon the applicable rules, the journal entry is recorded in the general journal in a specified format which includes the following details: Date of transaction Ledger accounts involved Amount of transaction A brief narration to describe the transaction Format of general journal Lets understand the format of general journal and theprocess of making a journal entry through an illustrationSolution:Here are the events that take placeAccounting Principles 07Example of Journal:Improving Profits 28The debit amount is written in the first "amount" column against the name of account debited and the credit amount in the second "amount" column against the name of account creditedExample Compound Entry:There are generally three steps to making a journal entrySo the journal entry would be made as follows: All business transactions are recordedin the general journal in a manner illustrated above.After making journal entries in the journal, they are periodically posted to the ledger accountsHere is an additional list of the most common business transactions and the journal entry examples to go with themThe word journal has been derived from the French word "Jour" Jour means daySearch for more articles about the Journal Entries: The flow of accounting information from the time a transaction takes place to its recording in the ledger may be illustrated as follows:it follows that the other account must be CrJournal Entry 7 – PGS sells another guitar to a customer on account for $300 79c7fb41ad
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