Format of Journal Entry

1. Simple Journal Entry

2. Compound Journal Entry

Or

Or

Journal is a book in which all the transactions of a business are recorded for the first time. Every transaction affects two accounts, one is debited and the other one is credited. ‘Debit’ (Dr.) and ‘Credit’ (Cr,) are the two terms or signs used to denote the financial effect of any transaction. The format of Journal Entry is prepared with 5 columns starting from Date, Particulars, Ledger Folio (LF), Debit Amount & Credit Amount. The word ‘journal’ has been derived from the French word ‘JOUR’ meaning daily records. Journal Book is maintained to have prime records for small firms. After preparing the journal book, the transactions are then posted to Ledger.