Notes Of account

Journalizing Transaction

Recording transaction:- As we know accounting is a part of recording the financial transaction, classifying and summarizing the financial transaction and interpreting the results their all.

Thus the accounting cycle involves the Followings stages:-

1.       Recording transaction:- This is done in the book termed as Journal.

2.       Classifying The Transaction:-   This is done in the book termed as Ledger.

3.       Summarizing The Transaction:-  This includes preparation of the Trial balance, profit & loss account and Balance-sheet  of the business.

4.       Interpreting The Result:- This involves the computation of various accounting ratios etc. to know about the liquidly, solvency and profitability of business.

Journal

A journal records all daily transaction of any business into the order in which

They occur. A Journal may there will defined as a book containing a chronological records of transactions.

It is a book in which the transaction are recorded first all under the double entry system. Thus journal is the book of original records.  A journal does not replace but precedes the ledger. The process of recording transaction in a journal is termed as Journalizing.

Date	Particular	L.F	Dr.	Cr.

The Terms Are:-

·         Date:-  The date on which the transaction was entered is recorded here.

·         Particular:- The Two aspects of transaction recorded in this column. The details regarding accounts which have to be debited and credited.

·         L.F (Ledger Folio):-  The transaction entered in the journal are lateral are posted to the ledger. The relevant ledger folio is entered here.

·         Debit:-  In this column the amount to be debited is entered.

·         Credit:-  In this column the amount to the credited is entered.