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.
Systematic recording of all such transactions are made under journal proper by following rules of double entry system of book-keeping.
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
Outstanding is also called due, payable, accrued, owing expenses or to be paid.
These expenses are incurred in the business but not yet paid.
These are to be considered as expenses.
Some examples are outstanding salary, outstanding interest, outstanding rent, outstanding wages etc.
It is debited in profit and loss account and is shown in liabilities side of balance sheet.
PROBLEM: 5A
Extracted information of ABC Traders:
Salary payable $/₹/Rs 60,000 for the month of June 30
Required: (1) Journal entry; (2) Show in profit and loss account and balance sheet
Journal Entry
In the book of ABC Traders
Date |
Particulars |
|
LF |
Amount |
Amount |
June 30 |
Salary account To Outstanding salary account (Being- salary payable or due) |
Dr
|
|
60,000
|
60,000
|
Profit and Loss Account
Particulars |
|
Amount |
Particulars |
Amount |
To Salary Add: Payable
|
Nil +60,000 |
60,000 |
|
|
Balance Sheet
Liabilities |
Amount |
Assets |
|
Amount |
Current liabilities: Salary payable
|
60,000 |
|
|
|
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BASIC JOURNAL ENTRIES IN NEPALI http://tiny.cc/uaakkz
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PROBLEM: 5B
ABC Traders following extracted information:
October 31: Wages paid Rs 125,000 and still payable Rs 20,000.
Required: (1) Journal entry; (2) Show in profit and loss account and balance sheet
Journal Entry
Journal Entry
In the book of ABC Traders
Date |
Particulars |
|
LF |
Amount |
Amount |
Oct 31 |
Wages account To Cash account To Outstanding wages account (Being- wages paid and payable) |
Dr
|
|
145,000
|
125,000 20,000
|
Trading Account
Particulars |
|
Amount |
Particulars |
Amount |
To Wages Add: Payable
|
125,000 +20,000 |
145,000 |
|
|
Balance Sheet
Liabilities |
Amount |
Assets |
|
Amount |
Current liabilities: Wages payable
|
20,000 |
|
|
|
Keep in Mind (KIM)
Payable mean expenses have incurred but payment is not paid. Outstanding* = due = payable = to be paid = unpaid |
PROBLEMS AND ANSWERS |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු =
Basic Problem: 5 OUTSTANDING EXPENSES
The following expenses are given you by GK Exporter (P) Ltd:
1 March: Rent due to house owner Rs 15,000.
5 March: Interest Rs 35,000 is unpaid.
10 March: Outstanding commission Rs 5,000
20 March: Discount is to be paid Rs 10,000.
29 March: Salary payable Rs 25,000.
30 March: Advertisement 8,000 paid and still payable Rs 3,000
Required: Journal entries
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