Mca i fma u 1.4 sub div. of journal

MCA

1. Subdivision of Journal MCA Financial Management Accounting UNIT 1

2. 2 Chapter Objectives Explain the importance of subdivision of Journal Name the different types of Journals Record Transactions in different Journals

3. 3 Importance of Subdivision of Journal Subdivision of Journal means dividing the Journal into various subsidiary books. It reduces the size of Journal and thus handling of Journal becomes easier. It helps in division of labour by allowing different persons to write different Journals. It helps in classifying information by associating a Journal with a particular aspect of the business.

4. 4 Types of Journals Journals can be broadly categorized into two types: Special Journal : Helps record transactions of specific type. It is further divided into the following types: Cash Journal Goods Journal Bills Journal General Journal : It is also known as Journal Proper. It records all such transactions that do not occur frequently in business. Examples of such transactions are opening entries, closing entries, adjustment entries, transfer entries and purchases of fixed assets.

5. 5 Cash Journal Cash Journal is used for recording all cash transactions. It is also known as Cash Book. Types of Cash Journal: Simple Cash Book Two Columnar Cash Book Three Columnar Cash Book Multi Columnar Cash Book Cash Receipts Book Cash Payment Book

6. 6 Simple Cash Book Simple Cash Book is just like an ordinary Cash account. It is also known as Single Column Cash Book. It functions both as a book and as a Ledger account. Date Particulars L.F. Amount Rs Date Particulars L.F. Amount Rs Dr. Cr. SIMPLE CASH BOOK

7. 7 Two Columnar Cash Book Two Columnar Cash Book consists of two columns for recording cash details: Cash column: It records cash receipts and payments. Discount column: It records discount received and discount given. Date Particulars L.F. Dis- count Rs Cash Rs Date Particulars L.F. Dis- Count Rs Cash Rs Dr. Cr. TWO COLUMNAR CASH BOOK

8. 8 Three Columnar Cash Book Three Columnar Cash Book consists of three columns for recording cash details. The first two columns are same as the Two Columnar Cash Book. Bank column is the additional column in Three Columnar Cash Book. Bank column records money deposited and money withdrawn from the bank.

9. 9 Three Columnar Cash Book (Cont…) Format of Three Column Cash Book: Date Particulars L.F. Dis- count Rs Cash Rs Bank Rs Date Particulars L.F. Dis- Count Rs Cash Rs Bank Rs Dr. Cr. CASH BOOK

10. 10 Multi Columnar Cash Book Multi Columnar Cash Book consists of more than three columns for recording cash details. Date Particulars Total Rs Date Particulars Voucher No. Col1 Rs Col2 Rs Col3 Rs Col4 Rs Col5 Rs Total Rs Dr. Cr. CASH BOOK

11. 11 Cash Receipts and Cash Payments Books Cash Receipts Book : It records all cash receipts transactions. Posting from Cash Receipts Book to Ledger is done daily and the entries are recorded in the credit side of the Ledger. At the end of a week, the Cash account is debited with the total cash received. Cash Payments Book : It records all cash payments transactions. Posting from Cash Payment Book to Ledger is done on a daily basis and the entries are recorded in the debit side of the Ledger. At the end of a week, the Cash account is credited with the total cash paid.

12. 12 Goods Journal Goods Journal is used for recording all transactions related to goods. Types of Goods Journal are: Purchases Journal : It records all credit purchases of goods. Sales Journal : It records all credit sales of goods. Purchases Returns Journal : It records all returns of goods purchased on credit. Sales Returns Journal : It records all returns of goods sold on credit.

13. 13 Bills Journal Bills Journal is used to record all bills of exchange and promissory notes received or issued by the business. Types of Bills Journal are: Bills Receivable Journal : It records all bills of exchange and promissory notes received by the business from its debtors. Bills Payable Journal : It records all bills of exchange and promissory notes issued by the business in favour of its creditors.

14. References ACCOUNTING FOR MANAGERS Dr. Sakshi Vasudeva Galgotia publishing company (Theory & Practice).Chapter no. 6 Subsidiary books . Page no. 127 http://www.davyamunanagar.in/collegelecturecontent/1384235119. ppt 14

15. 15 Summary In this chapter, you have: Explained the importance of subdivision of Journal Named the different types of Journals Recorded Transactions in different Journals

16. Thank you 16