Is the book of original entry used to record transactions that cannot be entered in any of the subsidiary books such as sales returns day book purchases returns day book and cash book.
THE ESSENTIAL INFORMATION OF JOURNAL PROPER
a) Date
b) The name of the account debited
c) The name of the account credited
d) The amount
e) Narration
Narration
Is a short explanation of the nature of the transaction which should always be given before the journal entry is closed.
|
Date |
Particular |
Dr |
Cr |
|
|
Account to be debited |
xx |
|
|
Account to be credited |
|
xx |
|
|
Being explanation for the concerning transaction |
|
|
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USES OF THE JOURNAL PROPER
The following are the uses of the journal proper;
A. Purchase of fixed assets on credit
B. Sales of fixed assets on credit
C. Opening entries
E. Correction of errors
A. PURCHASES OF FIXED ASSETS ON CREDIT
Example
On 1st September 1995, motor van has been purchased from Wanga Tshs. 140.00 on credit.
JOURNAL PROPER
|
Date |
Particular |
Dr |
Cr |
|
1stSept1995 |
Motor van a/c Wanga a/c Being motor van has been Purchased from wanga Tshs 140,000 on credit. |
140,000 |
140,000 |
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B. SALES OF FIXED ASSET ON CREDIT
Example
On 1st Sept 1995 computer was sold to Jerome on credit for Tshs 50,000.
JOURNAL PROPER
|
Date |
Particular |
Dr |
Cr |
|
1st Sept 1995
|
Jerome a/c Computer a/c Being computer sold to Jerome on credit 50,000. |
50,000 |
50,000 |
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C. OPENING ENTRIES
Example
Fixed assets 5,000 Stock 1,000
Cash in hand 3,000 Debtors 10,000
Cash at bank 2,000 Creditors 10,000
JOURNAL PROPER
|
Date |
Particular |
F |
Dr |
Cr |
|
|
Fixed assets |
|
5,000 |
|
|
|
cash in hand |
|
3,000 |
|
|
|
cash at bank |
|
2,000 |
|
|
|
debtors |
|
1,000 |
|
|
|
creditors |
|
|
10,000 |
|
|
capital |
|
|
11,000 |
|
|
Being Assets and Liabilities as at that date |
|
21,000 |
21,000 |
|
|
|
|
|
|
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