Journal Proper

Journal proper

This book is used for recording only those transactions which can not be recorded in any of the above mentioned subsidiary books. It is one kind of Subsidiary book 

Example: 

           In the event of purchase of furniture for Rs. 10,000/- from Mr. Srinivas, the transaction cannot be recorded in the purchase book because it is not the purchase of goods. So, we record it in the journal proper as under:

                  Furniture a/c         Dr                10000

                           To Mr. Srinivas    a/c                      10000

(Being the furniture brought from Mr. Srinivas on Credit)

Note: If the purchase is made for cash, it must be recorded in the cash Book.

Example:

            The firm owes to Mr. Rama Chandra a rent of Rs. 3000/- this entry will be as follows:

                           Rent a/c      Dr               3000

                                    To Mr. Rama Chandra a/c

                  (Being rent to be paid to Mr. Rama Chandra)  

Note: Had the rent been paid earlier, it would have been recorded in the cash book. As it is not paid, it is viewed as a liability of the firm.

Ledger Postings:

           The sum total of all the subsidiary books is posted to the relevant ledger accounts. We know that we have recorded all the purchase of goods in different amounts in the purchase book and while posting on the debit side of the purchase account the total amount is shown as a single item. Similarly, the sum total of the sales book is credited to the sales account. The ledger postings are also necessary for the entries in the journal proper.