JSS1 Second Term Business Studies Lesson Note – Journals

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WEEK 10

TOPIC: 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.

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.

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