Accountancy · Ch 6 — Subsidiary Books – I
Journal Proper
6
Journal Proper
However many special subsidiary books a business maintains, some transactions will always be left over — ones that genuinely don't belong to any of them. These are recorded in the Journal Proper, which functions exactly like the original, undivided Journal, complete with a full journal entry and narration for each transaction. Typical entries recorded here include:
| Transaction | Journal Entry (in substance) |
|---|---|
| Opening entries — bringing forward balances at the start of a new year | Individual asset A/cs Dr; To individual liability/Capital A/cs |
| Credit purchase/sale of an asset not meant for resale (furniture, machinery, etc.) | Asset A/c Dr; To Supplier's A/c (or reverse for a sale) |
| Goods withdrawn by the proprietor for personal use | Drawings A/c Dr; To Purchases A/c |
| Goods distributed as free samples for advertisement | Advertisement A/c Dr; To Purchases A/c |
| Goods given away as charity | Charity (or Donation) A/c Dr; To Purchases A/c |
| Goods lost by fire, theft, or accident | Loss by Fire (or Theft) A/c Dr; To Purchases A/c |
| Rectification of errors (see the dedicated later chapter) | As required by the specific error |
| Adjustment entries — outstanding/prepaid expenses, accrued/unearned income, depreciation, etc. | As required by the specific adjustment |
| Transfer entries — e.g., transferring Interest on Capital or Interest on Drawings to the relevant account | As required |
| Dishonour of a cheque or a bill of exchange | Debtor's/Drawer's A/c Dr; To Bank A/c (or Bills Receivable A/c) |
Definition 1Journal Proper
The residual subsidiary book recording, as complete journal entries, every transaction that does not fit any of the other special-purpose subsidiary books — e.g. credit purchase of an asset, goods withdrawn for personal use, goods given as free samples/charity, goods lost by fire, …