Journal proper refer to the special types of journals which occur occasionally.
These are also known by subsidiary journals.
There are certain types of transactions; which are not recorded in other subsidiary books but for the systematic recording.
Journal proper follows the rules of double entry system of bookkeeping.
Some examples of such transactions can be given as below:
Opening entries
Closing entries
Transfer entries
Adjustment entries (outstanding, prepaid, accrued, advance income)
Rectification entries
No special journal (free sample, loss by fire etc)
Rare transaction
Accrued revenue is earned but not received.
It is assume to receive in future.
It should be considered as receivable income for the year and recorded in asset.
It is based on accrual system of accounting.
The adjusting entry takes the following form:
PROBLEM: 7
Jaiswal Traders has these extracted data:
Interest received Rs 50,000 and still receivable or accrued Rs 20,000.
Required: (1) Journal entry; (2) Show in profit and loss account and balance sheet
SOLUTION
Journal Entries
In Jaiswal Traders
Date |
Particulars |
|
LF |
Amount |
Amount |
|
Cash account Accrued interest account To Interest earned account (Being- interest received and receivable)
|
Dr Dr
|
|
50,000 20,000
|
70,000
|
Profit and Loss Account
Particulars |
|
Amount |
Particulars |
|
Amount |
To Advance commission expired |
|
30,000 |
By Interest received Add: Accrued interest
|
50,000 +20,000
|
70,000 |
Balance Sheet
Liabilities |
|
Amount |
Assets |
|
Amount |
|
|
|
Current asset: Accrued interest
|
|
20,000 |
###########
Click on link for YouTube videos
ACCOUNTING EQUATION http://tiny.cc/c89jkz
BASIC JOURNAL ENTRIES IN NEPALI http://tiny.cc/uaakkz
BASIC JOURNAL ENTRIES http://tiny.cc/8aakkz
JOURNAL ENTRY AND LEDGER http://tiny.cc/caakkz
LEDGER http://tiny.cc/haakkz
SUBSIDIARY BOOK http://tiny.cc/399jkz
CASH BOOK http://tiny.cc/889jkz
TRIAL BALANCE & ADJUSTED TRIAL BALANCE http://tiny.cc/c59jkz
BANK RECONCILIATION STATEMENT (BRS) http://tiny.cc/q59jkz
DEPRECIATION http://tiny.cc/ugakkz
FINAL ACCOUNT: CLASS 11 http://tiny.cc/y89jkz
ADJUSTMENT IN FINAL ACCOUNT http://tiny.cc/keakkz
CAPITAL AND REVENUE http://tiny.cc/peakkz
SINGLE ENTRY SYSTEM http://tiny.cc/n19jkz
NON-PROFIT ORGANIZATION (NON-TRADING CONCERN http://tiny.cc/j09jkz
GOVERNMENT ACCOUNTING http://tiny.cc/hcakkz
GOSWARA VOUCHER (JOURNAL VOUCHER) http://tiny.cc/hcakkz
###########
PROBLEMS AND ANSWERS |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු =
Basic Problem: 7 ACCRUED INCOMES
Modi Traders has following extracted data:
(a) Interest receivable on investment $/₹/Rs 6,000.
(b) Commission earned but not received of Rs 11,000.
Required: (1) Journal entry; (2) Show in profit and loss account and balance sheet
***********
Thank you for investing your time.
Please comment on article.
You can help me by sharing this article at your social media platform.
Jay Google, Jay YouTube, Jay Social Media
जय गूगल, जय युट्युब, जय सोशल मीडिया