MANAGERIAL ECONOMICS

AND PRINCIPLES OF
ACCOUNTANCY
JOURNAL
 JOURNAL
• The word Journal has been derived from the French
word, “Jour” which means daily records.
• The Journal records all the daily transaction of a
business in chronological order.
• In Journal the transactions are recorded under the
double entry system.
• Journal is a book of the original records.
 PROFORMA OF JOURNAL
DATE PARTIC LEDGR DEBIT CREDIT
ULARS FOLIO ₹ ₹
 RULES OF ACCOUNTS
PERSONAL ACCOUNT- RULE:
“Debit the Receiver
Credit the Giver”
REAL ACCOUNT – RULE:
“Debit what comes in
Credit what goes out”
NOMINAL ACCOUNT- RULE:
“Debit all Expenses & Losses
Credit all Incomes & Gains”
JOURNAL PROBLEMS
PROBLEM:1
Journalize the following transactions in the books of Rama
Krishna.
2010

July-1- Rama Krishna started business with cash

₹.2,00,000
July-4 - Goods Purchased for cash ₹.20,000
July-5 – He deposited into Bank ₹.40,000

July -7 – Goods sold ₹.15,000

(Cont…)
₹₹
July-10 - Goods purchased from Krishna on credit
₹.25,000
July -11- Furniture purchased ₹.18,000
July -12- Wages paid ₹.400
July -20- Interest received ₹.500
July -25- Cash paid to Krishna ₹.25,000
July-30- Additional Capital introduced by Ramakrishna
₹.50,000
 Journals in the books of RamaKrishna
DATE PARTICULARS L/F DEBIT CREDIT
NO ₹ ₹
2010- Cash a/c Dr 2,00,000
July-1 To Capital a/c 2,00,000
(Being Rama Krishna
started business with cash)
2010- Purchase a/c Dr 20,000
July-4 To Cash a/c 20,000
(Being goods purchased for
cash)
2010- Bank a/c Dr 40,000
July-5 To Cash a/c 40,000
(Being cash deposited into
Bank)
2010- Cash a/c Dr 15,000
July-7 To Sales a/c 15,000
(Being goods sold for cash)

2010- Purchase a/c Dr 25,000

July-10 To Krishna a/c 25,000
(Being goods purchased from
Krishna)

2010- Furniture a/c Dr 18,000

July-11 To Cash a/c 18,000
(Being Furniture purchased)
2010- Wages a/c Dr 400
July-12 To Cash a/c 400
(Being Wages paid)

2010- Cash a/c Dr 500

July-20 To Interest a/c 500
(Being Interest received)

2010- Krishna a/c Dr 25,000

July-25 To Cash a/c 25,000
(Being cash paid to Krishna)

2010- Cash a/c Dr 50,000

July-30 To Capital a/c 50,000
(Being additional capital
introduced by Rama Krishna)
PROBLEM:2

Prepare Journals in the books of Swaroop & Company

from the following transactions.

2015

Dec 1- Started business with capital of ₹.50,000

Dec 5- Paid into bank ₹.20,000

Dec 8- Purchased goods for cash ₹.4000

Dec 9- Paid to Ramu ₹.1980, discount allowed by him ₹.20

(Cont…)
Dec 10- Cash sales ₹.3000
Dec 12- Sold to Hari for cash ₹.2000
Dec 15- Purchased goods from Ram ₹.4000
Dec 18- Paid wages to workers ₹.300
Dec20- Received from Pankaj ₹.1000, discount
allowed ₹.50
Dec 22- Withdrawn from bank ₹.3000
Dec 25- Paid to Ram by cheque ₹.500
Dec31 -Withdrawn for personal use ₹.2000
 Journals in the books of Swaroop & Company
DATE PARTICULARS L/F DEBIT CREDIT
NO ₹ ₹
2015- Cash a/c Dr 50,000
Dec-1 To Capital a/c 50,000
(Being started business with
cash)
2015- Bank a/c Dr 20,000
Dec-5 To Cash a/c 20,000
(Being cash paid into Bank)
2015- Purchase a/c Dr 4,000
Dec-8 To Cash a/c 4,000
(Being goods purchased for
cash)
2015- Ram a/c Dr 2,000
Dec-9 To Cash a/c 1,980
To Discount Received a/c 20
(Being cash paid to Ram &
discount received)
2015- Cash a/c Dr 3,000
Dec-10 To Sales a/c 3,000
(Being goods sold for cash)

2015- Cash a/c Dr 2,000

Dec-12 To Sales a/c 2,000
(Being goods sold for cash)
2015- Purchase a/c Dr 4,000
Dec-15 To Ram a/c 4,000
(Being goods purchased from
cash)
2015- Wages a/c Dr 300
Dec-18 To Cash a/c 300
(Being Wages paid)
2015- Cash a/c Dr 950
Dec-20 Discount Allowed a/c Dr 50
To Pankaj a/c 1000
(Being cash received from
Pankaj and discount allowed)
2015- Cash a/c Dr 3,000
Dec-22 To Bank a/c 3,000
(Being cash withdrawn from
bank)
2015- Ram a/c Dr 500
Dec-25 To Bank a/c 500
(Being cheque paid to Ram)
2015- Drawings a/c Dr 2,000
Dec-31 To Cash a/c 2,000
(Being cash withdrawn for
personal use)
PROBLEM:3
Journalize the following transactions in the books of
XYZ Company.
2017
Jan 1- Commenced business with cash for ₹.40,00
Jan 2- Purchased goods on credit from Shyam ₹.30,000
Jan 3- Received cash from Moorthy as advance for goods
ordered by him ₹.300
Jan 4- Paid wages ₹.500
Jan 5- Goods returned to Shyam ₹.200 (Cont…)
Jan 6- Goods sold to Kamal ₹.10,000

Jan 7- Goods returned by Kamal ₹.500

Jan 8- Paid into bank ₹.500
Jan 9- Goods sold for cash ₹.750

Jan 10- Bought goods for cash ₹.1000

Jan 11- Paid salaries ₹.700

Jan 12- Withdrawn cash for personal use ₹.1000

 Journals in the books of XYZ Company
DATE PARTICULARS L/F DEBIT CREDIT
NO ₹ ₹
2017- Cash a/c Dr 40,000
Jan-1 To Capital a/c 40,000
(Being started business with
cash)
2017- Purchase a/c Dr 30,000
Jan-2 To Shyam a/c 30,000
(Being goods purchased
from Shyam)
2017- Cash a/c Dr 3,000
Jan-3 To Moorthy a/c 3,000
(Being cash received from
Moorthy)
2017- Wages a/c Dr 500
Jan-4 To Cash a/c 500
(Being Wages paid)

2017- Shyam a/c Dr 200

Jan-5 To Purchase Returns a/c 200
(Being goods returned to Shyam)

2017- Kamal a/c Dr 10,000

Jan-6 To Sales a/c 10,000
(Being goods sold to Kamal)

2017- Sales Returns a/c Dr 500

Jan-7 To Kamal a/c 500
(Being goods returned by
Kamal)
2017- Bank a/c Dr 500
Jan-8 To Cash a/c 500
(Being cash paid into Bank)

2017- Cash a/c Dr 750

Jan-8 To Sales a/c 750
(Being goods sold for cash)

2017- Purchase a/c Dr 1,000

Jan-1 To Cash a/c 1,000
(Being goods bought for
cash)
2017- Salaries a/c Dr 700
Jan-1 To Cash a/c 700
(Being Salaries paid)
2017- Drawings a/c Dr 1,000
Jan-12 To Cash a/c 1,000
(Being cash withdrawn for
personal use)
PROBLEM:4
Journalize the following transactions in the books of
Roshini & Company.
2018
Jan 1- Roshni Started business with cash for ₹.10,000
Jan 2- Purchased goods from Krishna ₹.500
Jan 3- Sale of goods for cash ₹.150
Jan 5- Purchased goods for cash ₹.200
(Cont…)
Jan 6- Sale of goods to Charan ₹.400
Jan 7- Purchased goods from Mr.X for cash ₹.300
Jan 8- Sale of goods to Eshwar for cash ₹.250
Jan 9- Purchases ₹.150
Jan 10- sales ₹.100
Jan 12- Purchase of office furniture ₹.2000
Jan 14- Purchase of stationery on credit from
Ravi ₹.100
(Cont…)
Jan 17- Office rent paid ₹.500

Jan 18- Commission received ₹.200

Jan 19- Amount received from Charan ₹.400
Jan 25- Amount paid to Krishna ₹.500

Jan 29- Sale of old machinery for cash ₹.300

Jan 31- Paid salaries ₹.600
 Journals in the books of Roshni & Company
DATE PARTICULARS L/F DEBIT CREDIT
NO ₹ ₹
2018- Cash a/c Dr 10,000
Jan-1 To Capital a/c 10,000
(Being started business with
cash)
2018- Purchase a/c Dr 500
Jan-2 To Krishna a/c 500
(Being goods purchased
from Krishna)
2018- Cash a/c Dr 150
Jan-3 To Sales a/c 150
(Being goods sold on cash)
2018- Purchase a/c Dr 200
Jan-5 To Cash a/c 200
(Being goods purchased on
cash)

2018- Charan a/c Dr 400

Jan-6 To Sales a/c 400
(Being goods sold to Charan)

2018- Purchase a/c Dr 300

Jan-7 To Cash a/c 300
(Being goods purchased on cash)
2018- Cash a/c Dr 250
Jan-8 To Sales a/c 250
(Being goods sold on cash)
2018- Purchase a/c Dr 150
Jan-9 To Cash a/c 150
(Being goods purchased)

2018- Cash a/c Dr 100

Jan-10 To Sales a/c 100
(Being goods sold)

2018- Furniture a/c Dr 2,000

Jan-12 To Cash a/c 2,000
(Being goods bought for
cash)
2018- Stationery a/c Dr 100
Jan-14 To Ravi a/c 100
(Being Stationery purchased
on credit)
2018- Rent a/c Dr 500
Jan-17 To Cash a/c 500
(Being rent paid)

2018- Cash a/c Dr 200

Jan-18 To Commission a/c 200
(Being Commission received)

2018- Cash a/c Dr 400

Jan-19 To Charan a/c 400
(Being goods bought for cash)

2018- Krishna a/c Dr 500

Jan-25 To Cash a/c 500
(Being cash paid to Krishna)
2018- Cash a/c Dr 300
Jan-29 To Machinery a/c 300
(Being cash paid into Bank)

2018- Salaries a/c Dr 600

Jan-31 To Cash a/c 600
(Being Salaries paid)