JSS1 Business Studies Lesson Note on Journals

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JOURNALS

Journal is a document which contains the daily records of business transactions. Each record in a journal is called an entry. The journal is called a book of original entry because its entries are transferred to a second book.

Format of a Journal

Date Particulars Folio Invoice No. Amount
         

 

Types of Journal

We have two major divisions of Journals:  General Journal and Special Journal

General Journal:  this is a book that records all transactions (both sales and purchases). It is also used to correct errors made in the books of account. It is used when no special journal exists. It can also be called The Journal.

Format of a General Journal

Date Particulars Folio Invoice No. Dr.` Cr.
           

 

Special Journal:  it is used to record only one type of entry. Types of Special Journals are listed below:

  1. Purchases Journal
  2. Sales Journal
  3. Return Inward Journal
  4. Return Outward Journal

In order to keep the general ledger free from unnecessary details, separate journals are kept for credit transactions concerning sales and purchases.

Let’s take each of them one after the other.

Purchase Day Book or Purchases Journal

Purchase Day Book:  This is also known as the bought Journal.  It is used to record all daily particulars of goods bought for resale on credit. It is maintained exclusively for credit purchases of goods meant for resale. Entries are made in the purchase journal from the purchase invoices issued by the sellers.

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PREPARATION OF PURCHASE JOURNAL

Debit purchase account with the total amount of purchases for the period.  Credit the individual seller’s (creditor) account with the net amount.

Example

Enter these transactions in the purchase journal of Oke & sons for the month of June 2000, and post this to the ledger, June 15 Ekpe & Co.: Invoice No. 102

15 Dozens of Eraser at 250k a dozen

30 Rulers at 50k each

40 Writing pad at 10k each

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