Recording of Transaction

Basic terminology and Rules of debit and credit of journal, Journal entries for different transaction, Ledger account, Subsidiary book, Purchase book, Sales book, Purchase return book and Sales return book

Notes

Meaning and Concept of Journal Entries

The term journal is comes from French word "jour" that means a day. Journal, therefore , means a day or daily book or a record of business transaction. It is also known as book of a primary entry.

Journal entries and its preparation

For smooth operation of business, it may purchase different types of assets and put into use for tong term

Ledger Account

The final destination of all entries made in the journal is the ledger as they are all subsequently transferred to it

Subsidiary Book

This note provides the description about the subsidiary book and also describes about the different types of subsidiary book used by the business organizations. Such separate book of original entry, maintained for recording the similar and repetitive type of transactions is known as subsidiary book