Process of journalizing

Process of journalizing

1. Identify the accounts :
First of all, the affected accounts of an accounting transaction are identified.

Example : furniture worth rs 10000 are sold for cash, then furniture A/c, and Cash A/c,
Are the two affected accounts.

Furniture or cash are both real account apply Dr. Or Cf. Rule :

Entry in the journal will be.

Furniture a/c.       10000
To cash a/c.                              10000.
( being furniture purchased worth rs 10000).