Form of Journal:
The journal is ruled as follows:
The first column, i.e., the 'Date' column, is meant for recording the date on which a particular transaction takes place.
The second column, i.e., the 'Particulars' column, is meant for recording the names of the accounts to be debited and credited for a particular transaction.
When filling up the 'Particulars' column, in the first line, the name of the account to be debited is written. In the next line, the name of the account to be credited is written, after leaving a little space (about three to four letter space) to the left. The idea behind leaving a little space to the left in the next line is to make it easy to distinguish the debit entry from the credit entry. To link the two accounts (i.e., the account to be debited and the account to be credited), which are written in two different lines, the word 'Dr.' (i.e., the abbreviation of the term 'Debtor') is written at the end of the first line after the name of the account to be debited, and at the beginning of the second line, before the name of the account to be credited, the word 'To' is written. These two words means 'Debtor 'To', form the link between the two accounts and make it easy to read out a journal entry. To explain as to why one account is debited and the other account is credited, a brief explanation, usually, beginning with the word 'Being' or 'For' is written in the 'Particulars' column within brackets. This brief explanation to the journal entry is called 'Narration'. The narration given in the journal entry helps one to understand the nature and the purpose of the journal entry, i.e., the reason for the debit and credit in the journal entry. It may be noted that there is no particular way or style to write the narration. It can be written in any style. However, it should be brief.
The third column, i.e., 'L.F.' (the abbreviation of the term 'Ledger Folio'), column is meant for recording the page number of the ledger where the journal entry will be posted or transferred later. It helps in tracing an entry in the ledger easily. It also shows whether a journal entry has been posted to the ledger or not. If a page number does not appear against an entry in this column, it is an indication of the fact that the entry has not been posted to the ledger.
It should be noted that the 'L.F.' column can be completed only after the journal entry is posted to the concerned accounts in the ledger. Another point to be noted in this text is that, in the examination, in the absence of information about the ledger folio, the 'ledger Folio' column cannot be filled up, and so, it should be left blank.
The fourth column, i.e., the 'Dr.' column is meant for recording the amount to be debited. The amount to be debited is entered against the name of the account to be debited.
The fifth column, i.e., 'Cr.' column, is meant for recording the amount to be credited. The amount to be credited is entered against the name of the account to be credited.
Another point to be noted in the context of the form of Journal is that, to separate one journal entry from another, a line is drawn below every journal entry. The line must be drawn in the 'Particulars' column only. It should not be extended to the 'Amount' columns.
The journal is ruled as follows:
Journal
1 2 3 4 5
Date Particulars L.F. Dr. CR.
Rs. Rs.
The second column, i.e., the 'Particulars' column, is meant for recording the names of the accounts to be debited and credited for a particular transaction.
When filling up the 'Particulars' column, in the first line, the name of the account to be debited is written. In the next line, the name of the account to be credited is written, after leaving a little space (about three to four letter space) to the left. The idea behind leaving a little space to the left in the next line is to make it easy to distinguish the debit entry from the credit entry. To link the two accounts (i.e., the account to be debited and the account to be credited), which are written in two different lines, the word 'Dr.' (i.e., the abbreviation of the term 'Debtor') is written at the end of the first line after the name of the account to be debited, and at the beginning of the second line, before the name of the account to be credited, the word 'To' is written. These two words means 'Debtor 'To', form the link between the two accounts and make it easy to read out a journal entry. To explain as to why one account is debited and the other account is credited, a brief explanation, usually, beginning with the word 'Being' or 'For' is written in the 'Particulars' column within brackets. This brief explanation to the journal entry is called 'Narration'. The narration given in the journal entry helps one to understand the nature and the purpose of the journal entry, i.e., the reason for the debit and credit in the journal entry. It may be noted that there is no particular way or style to write the narration. It can be written in any style. However, it should be brief.
The third column, i.e., 'L.F.' (the abbreviation of the term 'Ledger Folio'), column is meant for recording the page number of the ledger where the journal entry will be posted or transferred later. It helps in tracing an entry in the ledger easily. It also shows whether a journal entry has been posted to the ledger or not. If a page number does not appear against an entry in this column, it is an indication of the fact that the entry has not been posted to the ledger.
It should be noted that the 'L.F.' column can be completed only after the journal entry is posted to the concerned accounts in the ledger. Another point to be noted in this text is that, in the examination, in the absence of information about the ledger folio, the 'ledger Folio' column cannot be filled up, and so, it should be left blank.
The fourth column, i.e., the 'Dr.' column is meant for recording the amount to be debited. The amount to be debited is entered against the name of the account to be debited.
The fifth column, i.e., 'Cr.' column, is meant for recording the amount to be credited. The amount to be credited is entered against the name of the account to be credited.
Another point to be noted in the context of the form of Journal is that, to separate one journal entry from another, a line is drawn below every journal entry. The line must be drawn in the 'Particulars' column only. It should not be extended to the 'Amount' columns.
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