Ch 3Journal — Class 11 Book-Keeping and Accountancy, concept-first.

The previous chapter established the two aspects (debit and credit) that every transaction has under the Double Entry System.

The Journal is ruled in a standard five-column format so that every entry, whatever the transaction, is recorded in exactly the same structured way.

Before an amount can be entered on the debit or credit side of a journal entry, every account touched by a transaction must first be classified into one of three traditional categories.

A journal entry is not considered complete merely because the correct accounts have been debited and credited with the correct amounts — every entry must also carry a narration.

Most of the entries seen so far involve exactly one account debited and one account credited — a simple journal entry.

A business that has been running for more than one accounting year does not start each new year with a blank slate — it carries forward the closing balances of its assets, liabilities and capital from…

Since the Goods and Services Tax (GST) applies to almost every purchase and sale of goods a business makes, the Maharashtra HSC Book-Keeping and Accountancy syllabus requires GST to be correctly recor…

Both trade discount and cash discount reduce the amount a buyer ultimately pays, but they are treated completely differently at the time of journalising — this is one of the most frequently tested dis…