Journal Proper

A journal proper is a book of original entry in which only certain types of financial transactions of a business are recorded in a certain order. Such types of transactions include the transactions of drawings, outstanding expenses, accrued incomes, reserves, provisions, interest on capital, drawing of goods and assets by the proprietor, loss of goods, and credit purchase and sale of other assets such as land, buildings, machinery and furniture.

Types of Entries

1. Opening entries
   All the assets and liabilities of the previous year are required to be carried forward to current year by passing entries. Such entries are called opening entries and passed through the journal proper. The assets are debited and liabilities are credited while passing opening entries. The excess of assets over liabilities is credited to capital account.
   
   
2. Closing entries
   The entries prepared for closing different ledger accounts in the process of preparing final account at the end of the year are called closing entries. Such entries are needed to transfer the expenses and incomes related with revenue nature to trading and profit and loss account. All those transactions are recorded in journal proper.
   
   
3. Transfer entries
   The transfer of amount from one account to another account is made through journal proper. Transfers of gross profit and net profit or loss are required at the time of final accounts preparation. Besides such transfers, the settlement of accounts is also needed. Such transfers of amount from one account to another account are made by passing entries in the journal proper.
   
   
4. Adjustment entries
   Incomes and expenses may occur after closing the ledger accounts at the end of accounting year. They appear in the form of adjustments. Such incomes and expenses should be adjusted either in trading account or profit and loss account or balance sheet. The entries passed for necessary adjustments are called adjustment entries.

Things to remember

• A journal proper is a book of original entry in which only certain types of financial transactions of a business are recorded in a certain order. 
• All the assets and liabilities of the previous year are required to be carried forward to current year by passing entries. 
• Incomes and expenses may occur after closing the ledger accounts at the end of accounting year.
• The entries prepared for closing different ledger accounts in the process of preparing final account at the end of the year are called closing entries.

• It includes every relationship which established among the people.
• There can be more than one community in a society. Community smaller than society.
• It is a network of social relationships which cannot see or touched.
• common interests and common objectives are not necessary for society.

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