DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : P. VYDURYAM
Designation : Lecturer
Branch : D.C.C.P
Institute : S.G.M. Govt Polytechnic,
Abdullapurmet
Year/Semester : I Year
Subject : ACCOUNTANCY-I
Subject Code : CCP102
Topic : SUBSIDIARY BOOKS
Duration : 50 Mts
Sub Topic : JOURNAL PROPER

Teaching Aids : PPT,CCP102.

Animations
50 1
Objectives :
On completion of this class, you would
be able to learn:

 What is Journal Proper

 Specimen Ruling of Journal Proper
 Uses of Journal Proper

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Recap :

In the previous class, we learnt about preparation

of following subsidiary Books

 Purchases Book
 Purchases Return Book
 Sales Book
 Sales Return Book
 Ledger Account

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Structure :

Meaning of Journal Proper

Specimen ruling of Journal Proper
Uses of Journal Proper
Entries in Journal Proper
Summary

Quiz and Questions

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Meaning of Journal proper:

 Business transactions are recorded in different

subsidiary books according to their nature

 Journal Proper is used to record transactions

which cannot be recorded in any Subsidiary
Books

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 Meaning Contd.

 Cash transactions are recorded in Cash Book

but the transactions which are not recorded in the

above subsidiary books are recorded in ‘Journal
Proper’

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Specimen Ruling of Journal Proper :
Date Particulars L.F Dr. Amount. Cr. Amount.

 Date: Records Date of transaction

 Particulars: Name of the accounts debited or
credited (narration also recorded)

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Specimen Ruling of Journal Proper :

Date Particulars L.F Dr. Amount. Cr. Amount.

 L.F: Page No. of the Ledger

 Dr. column: Debit amount
 Cr. Column: Credit amount

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Uses :
 To record Opening entries
 To record Closing entries
 To record Transfer entries
 To record Adjusting entries
 Purchase and sale of fixed assets on credit
 Entries relating to dishonor of bills
 Consignment and Joint Venture entries
 Rectification entries

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Opening Entries :

Used at the beginning of the financial year to

open the books for recording assets, liabilities
and Capital

Sundry Asset a/c Dr.

To sundry Liabilities a/c
To Capital a/c

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Closing Entries :
Used to Close all the expenses and revenues
at the end of the year
 Trading a/c Dr.
To opening Stock a/c
To Purchases a/c
To Wages
To Carriage Inwards
 Profit & Loss a/c Dr.
To Salaries a/c
To Travelling Expenses a/c
To Advertisement
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Transfer Entries :

Used to transferring an item from one

account to another account

Eg: Transfer 50% of profit is transferred to

reserve fund

Profit & Loss a/c Dr.

To Reserve Fund a/c

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Adjusting Entries :
Because of unrecorded Incomes and expenses,
it is very difficult to ascertain Profit or Loss, so
these incomes and expenses are adjusted

Eg: Outstanding expenses

Prepaid Expenses
Provision for Bad debts etc.,

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Purchase and Sale of Fixed Assets :
Purchase or Sale of goods on credit are
recorded in purchases or sales books, but
Fixed Assets are recorded in Journal Proper

When assets are purchased on credit :

Asset a/c Dr.
To Vendor’s a/c
When assets are Sold on credit :
Buyer’s a/c Dr.
To Asset a/c

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Dishonor of Bills :
 Bills payable and Bills Receivable transactions
are entered in respective subsidiary books
 But, transactions relating to Dishonor of Bills of
exchange are recorded in Journal Proper
Ex: Bills Receivable a/c Dr
To Debtor a/c

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Consignment and Joint Venture
Transactions :

 Dispatch of goods one place to another place for

the purpose of sale is known as Consignment
 Joint Venture is a Temporary partnership
 All the transactions relating to Consignment and
Joint venture are recorded in Journal Proper

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Rectification Entries :

Errors made due to

 Carelessness of the accountants
 Lack of adequate knowledge of accountants

For rectification of those type of errors

rectification entries are passed in Journal
Proper

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Purchase of Stationery
on Credit :

When stationery is purchased on credit, it

is Originally recorded in Journal proper

Stationery a/c Dr.

Creditors for Stationery a/c

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Summary :

We have so far dealt with

 Journal Proper
 Specimen Ruling of Journal Proper
 Uses of Journal Proper
 Examples of entries to be recorded in
Journal Proper etc.,

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Frequently Asked Questions :

1. What is Journal Proper.

2. Mention any four uses of Journal Proper.
3. What are the entries to be recoded in Journal
Proper.

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Assignment :

Prepare Journal Proper from the

following:
Machinery a/c 65,000
Buildings a/c 90,000
Bills payable a/c 25,000
Sundry Creditors 15,000

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Thank You

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