JSS 3 First Term Agricultural Science Lesson Note – Records and Book Keeping: Journal Preparation

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Topic: Records and Book Keeping

 Content: Journal Preparation

Sub-Topic 1: Journal Preparation

The journal is another book of original entry where the details of transactions other than normal cash transactions are first recorded. Apart from being a book of original entry, it also records the transfer of items between accounts and it facilitates the correction of errors that may occur during the process of book-keeping.

A typical journal form will look like this: 

Date	Particular                                                      Folio	Dr	Cr
25th June, 2012	Cash a/c To sales Being the sales of goods For cash	500	500

Every journal entry must be accompanied by a narrative statement stating the nature of the transaction. This is very important when journalising.

 Types of Journal

Sales journal

Purchase journal

Returned outward journal

Returned inward journal

 SALES JOURNAL: From the copy of sales, the seller enters its sales day book or sales journal. This book is a list in date order of each sales invoice showing the date, the name of the form to which the goods had been sold, the number of the invoice for reference purpose and the net amount of the invoice.

 PURCHASE JOURNAL: This is used to record purchases in an orderly manner. It is also called purchase day book. The entries of credit purchases in the books following a similar pattern to that of credit sales. The amount of the invoice (after deducting trade discount if there is any) is listed in the purchases day book and the items are then posted to the credit of a personal account in the purchases ledger. The invoice will then be filed away for future reference.

At the end of the period, the total of the purchases day book will be transferred to the debit account in the general ledger.

Example:Enter the following items in the purchases journal:

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