GENERAL JOURNAL :

This is also known as Journal Proper or General Jounral. It is used for making the original record of such transactions for which no special journal has been kept in the business. Entries recorded in the a journal proper may be confined to the following transactions:

(i) Opening Entries: Opening entries are passed at the beginning of the financial year to open the accounts by recording the assets, liabilities and capital appearing in the balance sheet of the previous year. It is written as follows:
Assets Account                                    Dr.
To Liabilities Account
To Capital Account

(ii) Closing Entries: Closing entries are passed at the end of the accounting year for closing of accounts relating to expenses and revenues. These accounts are closed by transferring their balances to the Trading and Profit & Loss Account.

(iii) Adjustment Entries: At the end of the accounting year, adjustments entries are passed for outstanding/prepaid expenses, accrued income/income received in advance etc. Entries for all these adjustments are passed in the journal proper.

(iv) Transfer Entries: Transfer entries are passed in the general journal for transferring an item entered in one account to another account.

(v) Rectification Entries: Rectification entries are passed for rectifying errors which might have committed in the books of account.

(vi) Purchase of Fixed Assets: When fixed assets are purchased on credit, the entries are passed in the general journal.

(vii) Sale of Worn-out or Obsolete Assets: When obsolete assets are sold on credit, these are originally recorded in the general journal.

Illustration 7:

On 31st March, 2012 following balances are available in ledger for the year 2011-12.

	Rs.
Furniture (debit balance)	20,000
Stock of Goods Account (debit balance)	70,000
S. Sircar (debit balance)	14,000
M. Mitra (debit balance)	7,500
Cash (debit balance)	2,400
B. Basu (credit balance)	13,900
Capital Account (credit balance)	1,00,000

 

Write the opening entry for 1st April, 2012

Date	Particulars	L.F	Dr. Amount Rs.	Cr. Amount   Rs.
2012 April 1	Furniture A/c                                                                        Dr.		20,000
	Stock of Goods                                                                     Dr.		70,000
	S.Sircar                                                                                    Dr.		14,000
	M. Mitra                                                                                 Dr.		7,500
	Cash A/c                                                                                 Dr.		2,400
	To B. Basu			13,900
	To Capital Account			1,00,000
	(For opening balances of various assets, liabilities and capital as on 1st April, 2012)