Journal Proper :

Journal proper is used for making the original record of such transactions for which no special journal has been kept in the business.

The usual entries that are put through this journal is explained below.

1. Opening Entries

Opening entries are used at the beginning of the financial year to open the books by recording the assets, liabilities and capial appearing in the balance sheet of the previous year.

Example:
Mr. Ramnath commenced business with the following items, make the opening entries in journal proper as on 1st January 2003 .

     Cash                                                                                                                                                                                   Rs. 30,000
Stock                                                                                                                                                                                     Rs. 15,000
Furniture                   Rs. 3,000
Sundry creditors      Rs. 10,000

Date	Particulars	Debit Rs.	Credit Rs.
Jan. 1	Cash A/c                                                                                                                         Dr.	30,000
	Stock A/c                                                                                                                        Dr.	15,000
	Furniture A/c                                                                                                                Dr.	3,000
	To Sundry creditors A/c		10,000
	To Capital A/c		38,000
	(Commencement of business with assets & liabilities)

 

2. Closing Entries

Closing entries are recorded at the end of the accounting year for closing accounts relating to expenses and revenues. These accounts are closed by transferring the balances to the Trading, Profit and Loss Account.

Example : Salaries paid Rs.15,000. Give the closing entry as on Dec. 31, 2003.

Date	Particulars	Debit Rs.	Credit Rs.
2003 Dec.31	Profit & Loss A/c                                                                                                                 Dr.	15,000
	To Salaries A/c		15,000
	(Closing entry for salaries paid)

 

3. Adjusting Entries

To arrive at a correct figure of profits and loss, certain accounts require some adjustments. Entries for making such adjustments are called as adjusting entries. These are needed at the time of preparing the final accounts.

Example : Provide depreciation on furniture Rs.1,00,000 @ 10% per annum. Give adjustment entry as on Dec. 31, 2003.

Date	Particulars		Debit Rs.	Credit Rs.
2003 Dec.31	Depreciation A/c                                                              Dr.		10,000
	To Furniture A/c			10,000
	(Depreciation written off )

 

4. Transfer Entries

Transfer entries are passed in the journal proper for transferring an item entered in one account to another account.
Example : When the proprietor takes goods Rs.5,000 for personal use. Give transfer entry on Dec. 31, 2003.

Date	Particulars	L.F.	Debit Rs.	Credit Rs.
2003 Dec.31	Drawings A/c                                                                    Dr.		5,000
	To Purchases A/c			5,000
	(Goods withdrawn for personal use)

 

5. Rectifying Entries

Rectifying entries are passed for rectifying errors which might have committed in the book of accounts.

Example : Purchase of furniture for Rs.10,000 was debited to Purchases Account. Pass rectifying entry on Dec. 31, 2003.

Date	Particulars	L.F.	Debit Rs.	Credit Rs.
2003 Dec.31	Furniture A/c Dr.		10,000
	Dec.31 To Purchases A/c			10,000
	(Wrong debit to purchases account rectified)

 

6. Miscellaneous Entries or Entries of Casual Nature

These are entries of casual nature which do not occur so frequently. Such transactions include the following:

i. Credit purchases and credit sale of assets which cannot be recorded through purchases or sales book

ii. Endorsement, renewal and dishonour of bill of exchange which cannot be recorded through bills book.

iii. Other adjustments like interest on capital and loan, bad debts, reserves etc.