Accounting: Posting into Ledger: Journal Proper, Opening Entry, Adjustment Entries, Transfer and Closing Entries

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Posting into Ledger

Mena Traders A/c

Dr. Cr.

Table Supporting: Posting into ledger

Tablutation of: Date, Particulars, J.F., Amount (Rs.), Date, Particular, J.F, Amount(Rs.)

Date

Particulars

J.F.

Amount (Rs.)

Date

Particular

J.F

Amount(Rs.)

2006

Mar 4

Sales

15,500

Kohli Furniture A/c

Dr. Cr.

Table Supporting: Posting into ledger

Tablutation of: Date, Particulars, J.F., Amount (Rs.), Date, Particular, J.F, Amount(Rs.)

Date

Particulars

J.F.

Amount (Rs.)

Date

Particular

J.F

Amount(Rs.)

2006

Mar 9

Sales

7,000

Handa Furniture Mart A/c

Dr. Cr.

Table Supporting: Posting into ledger

Tablutation of: Date, Particulars, J.F., Amount (Rs.), Date, Particular, J.F, Amount(Rs.)

Date

Particulars

J.F.

Amount (Rs.)

Date

Particular

J.F

Amount(Rs.)

2006

Mar 24

Sales

72,000

Furniture Traders A/c

Dr. Cr.

Table Supporting: Posting into ledger

Tablutation of: Date, Particulars, J.F., Amount (Rs.), Date, Particular, J.F, Amount(Rs.)

Date

Particulars

J.F.

Amount (Rs.)

Date

Particular

J.F

Amount(Rs.)

2006

Mar 30

Sales

36,000

Sales A/c

Dr. Cr.

Table Supporting: Posting into ledger

Tablutation of: Date, Particulars, J.F., Amount (Rs.), Date, Particular, J.F, Amount(Rs.)

Date

Particulars

J.F.

Amount (Rs.)

Date

Particular

J.F

Amount(Rs.)

2006

Mar 31

Sundries as per Sales book

1,30,500

Posting of Sales Returns Journal Book into Ledger

Kohli Furniture A/c

Dr. Cr.

Table Supporting: Posting of Sales Returns Journal Book into Ledger

Tablutation of: Date, Particulars, J.F., Amount (Rs.), Date, Particular, J.F, Amount(Rs.)

Date

Particulars

J.F.

Amount (Rs.)

Date

Particular

J.F

Amount(Rs.)

2006

Mar 18

Sales Returns

2,800

Sales Return A/c

Dr. Cr.

Table Supporting: Posting of Sales Returns Journal Book into Ledger

Tablutation of: Date, Particulars, J.F., Amount (Rs.), Date, Particular, J.F, Amount(Rs.)

Date

Particulars

J.F.

Amount (Rs.)

Date

Particular

J.F

Amount(Rs.)

2006

Mar 31

Sundries as per Sales Returns book

2,800

Journal Proper

Transactions which do not find place in Special Journals will be recorded in separate book called Journal Proper. Following transactions are recorded in Journal Proper –

Opening Entry

The opening balance is the first entry in a firm’s accounts, either when they are starting a new business or at the start of a new financial year. For the Opening balance of Assets, Liabilities and Capital, one opening entry is made in the Journal.

Adjustment Entries

Entries relating to modification of the accounts at the end of an accounting period are called adjustment entries. Entry for Prepaid insurance, Depreciation, Rent outstanding and commission received in advance is made in the journal proper under adjustment entries.

Rectification Entries

When an error is detected in the books, the same will be rectified using a special entry in the journal proper that is called as Rectification Entry.

Transfer and Closing Entries

When accounts are transferred from one account to other account, a transfer entry is recorded in journal proper. Accounts relating to Incomes, Expenses and drawings are closed at the end of the year and transferred to Trading, Profit and Loss statements by making closing entries in Journal Proper.

Other Entries

Entries other than mentioned above and do not come under any special book, will be recorded in journal proper. Those are –

  • Goods withdrawn by the owner for personal use.

  • Goods distributed as samples for sales promotion.

  • Endorsement and dishonor of bills of Exchange

  • Purchase/sale of items other than goods dealt- in on credit.

  • At the time of a dishonor of a cheque the entry for cancellation of discount received or discount allowed earlier.

  • Loss of goods by fire/theft/spoilage.

  • For recording amounts which have become irrecoverable.

  • Transaction in respect of consignment and Joint Venture, etc.

Example:

Record the following transactions in the Journal Proper of M/s Nishant

Electronics:

(i) Purchased on account furniture from M/s Furniture House for Rs.6,000.

(ii) Purchased stationery for office use from M/s Stationery Mart Rs.700.

(iii) Made full and final payment to M/s Furniture House by Cheque

Discount allowed by them Rs.200.

(IV) Prepaid Insurance Rs. 1,000.

(v) Depreciation on Machinery Rs.3, 000.

(vi) Goods Rs.5, 000 withdrawn by the partner for personal use.

(vii) Rs.600 not recovered from a debtor.

Solution:

Books of M/s Nishant Electronics

Journal Proper

Table Supporting: Transfer and Closing Entries

Tablutation of: Date, Particulars, L.F., Dr. Amount (Rs.), Cr. Amount (Rs.)

Date

Particulars

L.F.

Dr. Amount (Rs.)

Cr. Amount (Rs.)

(i)

(ii)

(iii)

(iv)

(v)

(vi)

(vii)

Furniture A/c Dr.

To M/s Furniture House

(Purchase of furniture on credit)

Stationary A/c Dr.

To M/s Stationary Mart

(Purchase of Stationary on credit)

M/s Furniture House Dr.

To Discount Received A/c

(Discount received )

Prepaid Insurance A/c Dr.

To Insurance premium A/c

(Insurance premium paid in advance)

Depreciation A/c Dr.

To Machinery A/c

(Depreciation charged on Machinery)

Partner’s Capital A/c Dr.

To Purchases A/c

(Goods withdrawn for personal use)

Bad Debts A/c Dr.

To Debtors A/c

(Amount not recovered from Debtors)

6000

700

200

1000

3000

5000

600

6000

700

200

1000

3000

5000

600

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