What is a Journal Accounting? Entries

What is Journal Accounting?

What is a Journal Accounting?entries 
Concept
Generally, most of the business transactions which are common and repetitive in nature are recorded in subsidiary book. For example purchase book is maintained to record credit purchase of book, sales book is maintained for credit of goods and cash book is recorded in the above mentioned subsidiary book but a separate and special book is minted to record such transaction which is known as journal proper. The transactions recorded in journal proper include drawing, reserves, prov

ision, credit purchase and sales of assets, outstanding expenses, accrued income etc. provision, credit purchase and sales of maintained to record such special type of transaction which are not recorded in any subsidiary book such as purchase book, sales book, cash book etc.
The following are the entered which are made in journal proper.
• Opening entries
• Closing entries
• Transfer entries
• Transfer entries
• Adjustment entries
• Rectification entries
• Residual entries

Opening entries

The entries passed to recorded and carry forward the assets and liabilities of previous year into the books of account of current year are termed as opening entries. All the assets of previous years are debited and liabilities are credit. The excess value of assets over the liabilities is credited to capital account.
Closing entries
In the process of preparing final accounts, the various ledger accounts are closed by passing n entry which is known as closing entry. Closing entries are passed to transfer all revenue expenditure and revenue income in trading and profit and loss a/c.
Transfer entries
An entry passed to transfer the amount of one account to another account is called transfer entry. Transfers of profit to reserve transfer of purchase to drawing, transfer of bad debt to profit and loss account are a few example of transfer entry.
Adjustment entries and preparation of adjusted trial balance
Expenses and income may occur after the closing of ledger account at the end of accounting period. Thus such expenses and income are left unrecorded in the book of account. However these expenses income are not adjusted. The true operating result and financial position of the business may not be ascertained. Therefore the entries passed to record/adjust the unrecorded event/transactions of business are called adjusting entries and trial balance prepared after adjusting the unrecorded event/transactions is called adjustment trial balance. Some of the usual adjustments are explained below.
Outstanding expenses
These are the expenses which are due but not paid. Since the benefit have already been received from these expenses. These expenses must be adjusted while preparing while preparing final accounts.
Prepaid expenses
These are the expenses paid in advance to get benefit (service) in future. Thsese expenses must be adjusted while preparing final accounts)
Advance incomes
These are the income received before delivering service. These are the income of future accounting period. So they be adjusted while preparing final accounts.
Accrued income
These are the incomes which are due but the amount has not been received yet. Accrued income is the of current year. If must be adjusted while preparing final accounts.
Depreciation
Depreciation is the gradual and automatic reduction in the value of fixed assets. These expenses should also be adjusted at the time of preparing final accounts.
Bad debt and provision for bad debts
The amounts which are irrecoverable from customers from customers are termed s bad debt and an amount which is provided in advance to meet such loosed provision for debts. Are losses for the business. Therefore, they must be adjusted while preparing final accounts.
Closing stock
The goods which is remain unsold during a period is called closing stock. It should be adjustment so as to determine the true profit loss of the business during as accounting period.
Rectification Entries
The entries made to rectify the errors committed in the books of account are called rectification entries. The rectifications entries are discussed in debit the chapter "accounting errors and their rectification.
Residuals entries
The residual entries are passed to record the following transactions.
Credit purchase and sale of assets
The credit purchase and sale of assets like furniture, machines etc are not recorded in purchase book and sales book. Ra her they are recorded in journal proper.