Journal and Ledger

1.Meaning of Journal
---------Journal is that primary books of account in which transactions are
originally recorded in a chronological [i.e day to day] order.
---------Journal is also known as ook of !riginal "ntry#as any
transaction is $rst written in the Journal %orm and subse&uently posted
to the Ledger.
---------'n entry made in the (ournal is called a Journal "ntry#.
---------)he *rocess of +ecording a transaction in a Journal is
known as
Journalising.
,.-lassi$cation of 'ccounts.--
'ccounts

,.+ules of /ebit and -redit
--------------'.0olden +ules of /ebit and -redit

)ypes of 'ccount /ebit -redit
1.*ersonal 'ccount -----the +ecei1er. -----the 0i1er.
,.+eal 'ccount -----2hat -omes 3n. -----2hat 0oes
!ut.
4.5ominal 'ccount ------'ll "6penses
and
Losses.
-----'ll 3ncomes
and 0ains.
--------------.+ules of /ebit and -redit based on Modern -lassi$cation of
'ccounts
)ypes of 'ccount /ebit -redit
1.'ssets 'ccount ----the 3ncrease. -----the /ecrease.
,.Liabilities 'ccount ----the /ecrease. -----the 3ncrease
4.3ncome or +e1enue 'ccount ----the /ecrease. -----the 3ncrease
7."6penses or Loss'ccount -----the 3ncrease. ----the /ecrease.
8.-apital 'ccount ----the /ecrease. -----the 3ncrease.
4.9imple "ntry :s. -ompound "ntry
---------9imple entry denotes such an entry in which only two[,]
accounts are a;tected.[i.e one account is /ebited and !ther 'ccount is
credited with e&ual amount.]
----------ompound "ntry denotes an accounting entry where more than
two [,] accounts are in1ol1ed.