Journal

Journal :

Journal is derived from the french word ' jour' which means a day. Journal means a daily record of business transaction.journal is a book of original entry because transaction is first written in the journal. From which it is posted to the ledger at any convenient time.


Format :

Journalizing means recording a transaction in the journal and the form in which it is recorded is known as journal entry.


Example: Mr. Ram started business under the name ram traders on 5Jan10. With cash rs 50000.

Date.   
5 jan 10.


Cash account.             50000
To capital account.                    50000
( being business started with cash rs 50000).