Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
EDUCATION :: AP
Name : K.HANUMANTHA RAO
Designation : Head of Section
Branch : Commercial & Computer Practice (CCP)
Institute : GPW, Guntur
Year/Sem : I Yr
Subject : ACCOUNTANCY-I
Sub-Code : CCP-102
Topic : Subsidary Books
Duration : 50 minutes
Sub Topic : Journal proper
Teaching Aids : PPT, ANIMATIONS
CCP102.74TO75 1
Objectives
CCP102.74TO75 2
Recap
CCP102.74TO75 3
Journal Proper
The Transactions which cannot be recorded in any
one of the following subsidiary books, are recorded in the
Journal Proper
e) Purchases Book
f) Sales Book
g) Purchases Returns Book
h) Sales Returns Book
i) Cash Book
j) Bills Receivable Book
k) Bills Payable Book
CCP102.74TO75 4
Example 1:
In the event of purchase of furniture for Rs. 10,000/- from
Mr.Srinivas, the transaction cannot be recorded in the purchases
book because it is not the purchase of goods. So, we record it in
the journal proper as under:
Note: If the purchase is made for cash, it must be recorded in the cash book.
CCP102.74TO75 5
Example 2: The firm owes to Mr. Chandra a rent of
Rs.3000/-.
The entry will be as follows:
Rent a/c Dr 3,000
To Mr. Chandra a/c 3,000
(Being rent to be paid to Mr. Chandra)
CCP102.74TO75 6
Ledger Posting
The ledger Postings are necessary for the entries in the
journal proper as is done in other subsidiary books.
CCP102.74TO75 7
1 Opening Entries:
The Assets and capital brought in should be first
recorded in the journal proper and afterwards they are
posted to the respective accounts in the ledger. These
entries are called the Opening Entries.
Example 3: Suppose Kumar commenced business on
January 1st, 1998 with the assets Rs.10,000/- in cash,
furniture worth Rs.5,000/-, Machinery worth Rs. 4,000/-
and stock worth Rs. 3,000/-. He writes journal entries as
under.
CCP102.74TO75 8
Solution :
Journal Proper
Date Particulars L.F Debit Credit
In the above example the entries made to transfer the previous years
assets and liabilities to the current year are called the opening entries
CCP102.74TO75 9
Example 4: Write down the opening entries on Jan 1st, 1998
for the following information provided by Mr. Sukumar. The
following are the ledger balances as on 31st December ,1997.
CCP102.74TO75 10
Solution:
Date Particulars L.F Debit Credit
NO Amount Amount
Rs Rs
CCP102.74TO75 11
Note :- 1. In the entry of the journal proper, if two or more debit or credit items
are shown, they are called compound entries.
2. It should be noted that in order to facilitate the recording of the opening
entries, cash item included in the journal proper .
CCP102.74TO75 12
Solution:
CCP102.74TO75 13
Example-6
The Ledger balances of the accounts of Sunitha as on Dec 31st
2005 are as under. You are required to show the opening
entries in their book as on January 1st 2006.
Cash Rs. 8,000,
Cash at Bank Rs. 10,000
Debtors Rs.20,000
Furniture Rs. 12,000
Machinery Rs.21,000
Bills Receivable Rs. 11,000
Buildings Rs.15,000
Creditors Rs.12,000
Stock Rs.5,000
Bills payable Rs.6,000
Capital Rs.84,000
CCP102.74TO75 14
Solution:
Date Particulars L.F Debit Credit
NO Amount Amount
Rs Rs
1998 Cash a/c Dr 8,000
Jan 1 Bank a/c Dr 10,000
Debtors a/c Dr 20,000
Bills receivable Dr 12,000
Machinery a/c Dr 11,000
Buildings a/c Dr 21,000
Furniture Dr 15,000
Stock Dr 5,000
12,000
To creditors a/c 6,000
To bills payable a/c 84,000
To capital a/c
(being the balances of the previous year brought into the current
year books)
CCP102.74TO75 15
2. Rectification Entries:
CCP102.74TO75 16
Example 7:- Rama paid Rs.100. This was erroneously
credited to Bheema’s a/c. The rectification entry will be as
follows:
CCP102.74TO75 17
Example 8: A businessman, instead of debiting
the salary a/c with Rs.10,000 debited the insurance
a/c. Correct this entry.
Date Particulars L.F Debit Credit
NO Amount Amount
Rs Rs
CCP102.74TO75 18
3.Adjustment Entries
The value of the assets at the beginning of the year is not equal
CCP102.74TO75 20
4.Closing Entries
At the end of every financial year, the balances of
CCP102.74TO75 21
The following are the closing entries:
CCP102.74TO75 22
Date Particulars L.F Debit Credit
NO Amount Amount
Rs Rs
CCP102.74TO75 23
Date Particulars L.F Debit Credit
NO Amount Amount Rs
Rs
XXX XXX
Interest received a/c Dr XXX
Discount received a/c Dr XXX
Dividend received a/c Dr XXX
Rent received Dr XXX
To profit and loss a/c XXX
(being accounts of revenue incomes balanced and transferred
to profit and loss a/c)
CCP102.74TO75 24
5. Other Entries:
personal use.
6.Goods lost due to theft, fire accident etc.
7.Goods sent on consignment for sale purpose.
8.Interest on capital, interest on drawings, provision for
doubtful debts, provision for depreciation etc.
CCP102.74TO75 25
Summary
The Transactions which cannot be recorded in any other
subsidiary books, are recorded in the Journal Proper.
CCP102.74TO75 27
2. The Journal Proper records
(a) All cash transactions
CCP102.74TO75 28
Frequently Asked Questions
CCP102.74TO75 29
2. From the following information, write down the opening
entries in the books of Sukumar as on 1-3-2007
CCP102.74TO75 30