Chapter 6 - Journalizing. Book of original entry. Transactions recorded in chronological order....

Chapter 6 - Journalizing

Book of original entry.

Transactions recorded in chronological order.

Purpose of the Journal:

1. Shows the complete effects of a transaction.

2. Provides a chronological record of transactions.

3. Helps to prevent or locate errors because the debit and credit amounts can be easily compared.

The JournalThe Journal

SO 4 Explain what a journal is and how it helps in the recording SO 4 Explain what a journal is and how it helps in the recording process.process.

Chapter 6.1

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• Enter the date

Recording Journal Entries

Chapter 6.1

16Date

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Chapter 6.1

16Step 2

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• Enter the debit account(s)

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16

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Supplies

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Supplies

• Enter the debit amount(s)

Step 3

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Supplies 1 3 5 –

Enter Debit Amounts

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Supplies 1 3 5 –

• Indent and enter the credit account(s)

Step 4

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Supplies 1 3 5 –

Bank

Enter Credit Accounts

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Supplies 1 3 5 –

Bank

• Enter the credit amount(s)

Step 5

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99Nov.Nov.20—20—

Supplies 1 3 5 –

Bank 1 3 5 –

Enter Credit Amounts

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Supplies 1 3 5 –

Bank 1 3 5 –

• Write a brief explanation (at left margin)

Step 6

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Supplies 1 3 5 –

Bank 1 3 5 –

Letterhead and envelopes; cheque #40

Write Explanation

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Supplies 1 3 5 –

Bank 1 3 5 –


• Skip a line and complete next entry

Skip a line

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1 3 5 –

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Supplies 1 3 5 –

Bank


12

Record the Next Entry

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Supplies 1 3 5 –

Bank 1 3 5 –


12 Equipment


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Supplies 1 3 5 –

Bank 1 3 5 –


12 Equipment 12 0 0 0 –


Chapter 6.1

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Supplies 1 3 5 –

Bank 1 3 5 –


12 Equipment 12 0 0 0 –

A/P—World Wide Fibre Optics


Chapter 6.1

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Supplies 1 3 5 –

Bank 1 3 5 –


12 Equipment 12 0 0 0 –

A/P—World Wide Fibre Optics 10 0 0 0 –


Chapter 6.1

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99Nov.Nov.20—20—

Supplies 1 3 5 –

Bank 1 3 5 –


12 Equipment 12 0 0 0 –


Bank


Chapter 6.1

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Supplies 1 3 5 –

Bank 1 3 5 –


12 Equipment 12 0 0 0 –


Bank 2 0 0 0 –


Chapter 6.1

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Supplies 1 3 5 –

Bank 1 3 5 –


12 Equipment 12 0 0 0 –


Bank 2 0 0 0 –

Network software installation; issued cheque

#41 with the balance due in 30 days.


Chapter 6.1

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Supplies 1 3 5 –

Bank


12 Equipment




12 0 0 0 –

Bank

10 0 0 0 –

2 0 0 0 –

1 3 5 –

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• Consecutive page numbers

Page Numbers

Chapter 6.1

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Supplies 1 3 5 –

Bank


12 Equipment




12 0 0 0 –

Bank

10 0 0 0 –

2 0 0 0 –

1 3 5 –

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• Each journal entry balances

Balanced Entries

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Supplies 1 3 5 –

Bank


12 Equipment




12 0 0 0 –

Bank

10 0 0 0 –

2 0 0 0 –

1 3 5 –

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• A “compound entry” affects more than two accounts

Compound Entries

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Supplies 1 3 5 –

Bank


12 Equipment




12 0 0 0 –

Bank

10 0 0 0 –

2 0 0 0 –

1 3 5 –

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• Account titles are capitalized

Account Titles

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• Amounts in the opening journal entry are the same as amounts on the opening balance sheet

Bank

Supplies

Equipment

Bank Loan

Opening financial position of Shirley Cassar

19 5 5 0 –

Shirley Cassar, Capital

10 0 0 0 –

1 4 0 0 –3030Oct.Oct.20—20—

Automobile

22 0 9 0 –

8 7 1 5 –

2 4 2 5 –

The Opening Entry

Chapter 6 - Journalizing. Book of original entry. Transactions recorded in chronological order....

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Transcript of Chapter 6 - Journalizing. Book of original entry. Transactions recorded in chronological order....