Journals

DEFINATION OF A JOURNAL

1. A journal is a detailed account of all

the financial transactions of a

business or
2. A journal is a record of financial
transactions in order by date
Other names of journals used
in accounting are:-

 BOOKS OF PRIME ENTRY

 BOOKS OF ORIGINAL ENTRY

 DAYBOOKS

 DIARY
 TYPES OF JOURNALS

1. SALES JOURNAL
2. PURCHASES JOURNAL
3. RETURN INWARDS JOURNAL
4. RETURN OUTWARDS JOURNAL
5. PETTY CASHBOOK
6. PETTY CASH BOOK
7. MASTER / GENERAL JOURNAL
 Sales journal

 Records sales made on credit

 Source documentation…out going

invoice

 Format ………ILLUSTRATION
 Purchases journal

 Records credit purchases

 Source documentation… incoming

invoice

 Format………
 Return inwards journal
 Definition-RECORDS SALES
RETURNS

 Content

 Originating documentation

 Illustration …………
 Return outwards journal
 Definition-
RECORDS PURCHASE
RETURNS

 Content

 Originating documentation

 Illustration ………..
 Originating/Source
documentations
 Invoice-A document issued when the transaction
was done on credit to demand for their payment
i. Outgoing invoice;- used in credit sales
ii. incoming invoice:- used for credit purchases

 Credit note: used to journalise sales returns or

return inwards

 Debit note: used to journalise purchase returns

or return outwards
 Receipts used for cash transactions
• DETAILS/PARTICULARS
 MASTER/GENERAL JOURNAL

 Master journal that all organization transactions

or journal entries are recorded in
 Is a MUST in all organizations..........TAKATAKA
 Content and format

 Originating documentation

 Illustrations ………..
 EXAMPLES OF TRANSACTIONS

TRANSACTION
2nd May, 2022
Brought in capital by cash $ 60,000.....
CASH..........ASSET.........INCREASE.,....DEBITED
CAPITAL.....CAPITAL......INCREASE.......CREDITED

9th May, 2022

Bought a machine on credit from Jawaka Enterprises $5,000
MACHINE........ASSET.............INCREASE.........DEBITED
JAWAKA ENT...LIABILITY..........INCREASE.......CREDITED

16th May, 2022

Deposited $ 20,000 from office to business bank
account..............BANK....ASSET......INCREASE...DEBIT
CASH....ASSET.....DECREASE....CREDIT
DEBIT.........
ASSET/EXPENSES........................INCREASE
LIABILITY/CAPITAL/REVENUE......DECREASE

CREDIT.........
ASSET/EXPENSES........................DECREASE
LIABILITY/CAPITAL/REVENUE.......INCREASE
An example of a master journal
DATE DETAILS DEBIT ($) CREDIT ($)
MAY, 2021
2ND CASH 60,000
…………………….........CAPITAL 60,000
(INTRODUCED CAPITAL)
9TH MACHINES 5,000
………………..JAWAKA ENTERPRISES 5,000
(BOUGHT A MACHINE ON CREDIT)

16TH BANK 20,000

…………………………………………CASH 20,000
(DEPOSITED CASH TO BANK)
16TH TOTAL 85,000 85,000
 POSTING
• THE INFORMATION IN THE JOURNALS
IS POSTED TO:-

• LEDGER ACCOUNTS/T-ACCOUNTS