Journal entries for accounting students. How to post in journal.

Journal Entries for accounting

1. Journalising of
transactions
Presentation by NBSC

2. Journalising Transactions
Objectives:
At the end of the session on the subject,
participants will be to
Identify stages of accounting
Appreciate the role journal in recording
business transactions
Understand the rules of debit and credit

3. Journalising Transactions
Objectives (contd.)
Describe various categories of accounts
Pass appropriate entries for recording
transactions
Explain the meaning of certain key terms

4. Journalising Transactions
What is accounting?
Accounting is an art of
Recording
Classifying and summarising
Analysing and interpreting results
Communicating

5. Journalising Transactions
What is journalising ?
‘The process of recording transactions in a
journal is termed as ‘journalising’
What is transaction ?
‘ It is an exchange in which each participant
receives or sacrifies value’

6. Journalising Transactions
Journal:
Records all transactions of a business
in the order in which they occur
It contains a chronological record of
transactions
It is book of first entry
It does not replace but precedes a
ledger

7. Classification of Accounts –
Traditional Approach
Types of
Account
Meaning Examples
1. Personal
Accounts
Relate to
•natural persons,
•artificial persons
and
•representative
persons
Natural–Ram’s
a/c
Artificial–Ram &
Co’s A/c
Representative–
outstanding
salary A/c

8. Classification of Accounts –
Traditional Approach
Types of
Account
Meaning Examples
2. Real
Accounts
Relate to
tangible or
intangible real
assets
Tangible –Land A/c
Intangible –Goodwill
A/c

9. Classification of Accounts –
Traditional Approach
Types of
Account
Meaning Examples
2. Nominal
Accounts
Relate to
expenses,
losses,
profits &
gains
Tangible –Land A/c
Intangible –Goodwill
A/c

10. Journalising transactions –Various
steps to be followed
Step 1 : Ascertain the accounts involved in
a transactions
Step 2 : Ascertain the nature of accounts
involved
Step 3 : Apply of rule of ‘Debit’ and ‘Credit’
Step 4 : Ascertain which account to be
debited and which is to be credited

11. Journalising transactions –Various
steps to be followed
Step 5 : Record date of transactions
Step 6 : Write account to be debited close to
the left hand side
Step 7 : Write the account to be credited in the
next line precede by the word ‘To’
Step 8 : Write narration

12. Rules for ‘Debit’ and ‘Credit’
Types of
Account
Rules for debitRules for credit
Personal A/cDebit the
Receiver
Credit the giver
Real A/C Debit what
comes in
Credit what
goes out
Nominal A/c Debit all
expenses and
losses
Credit all gains
and profits

13. Format of a Journal
Date Particulars L.F.Debit
Rs.
Credit
Rs.
28.05.07Cash a/c Dr
To Bank a/c
(Being the cash
withdrawn from bank
for business use)
10,000
10,000
28.05.07

14. Journalising Transactions
Key terms
Journal : A book containing chronological
record of business transactions
Compound journal entry :
A journal entry recording more than one
business transaction
Nominal accounts
Opening journal entry

15. Journalising Transactions
Key terms (contd.)
Journalising
Personal Accounts
Real Accounts

16. Thank You