Day Books may be used.

Example of journal and ledger. All the columns are to be filled at the time of recording the transaction in the journal except the ledger folio column which is filled when the transaction is posted to the ledger. The source of information for the journal is the document. Similarly write the ledger page number in the folio column of the journal.

The accounts which relate to tangible or intangible assets of the firm excluding debtors are termed as Real Accounts. The Journal is known as the book of original entry but Ledger is a book of second entry. Instead of following this cumbersome process.

Following are transaction for the month of August 2016 prepare Journal Entry General Ledgers and Trial Balance. Conversely in the ledger the transactions are recorded on the basis of accounts. The journal entries may extend to multiple pages and so both the two columns are totalled at the end of each page with the word Total cf ie.

In journal transactions are recorded in chronological order whereas in ledger transactions are recorded in analytical order. It is the storehouse for recording. FOB shipping point for Rs.

Make journal entries. Journals are always done first before ledgers. Because each transaction is initially recorded in a journal rather than directly in the ledger a journal is called a book of original entry.

Examples Tangible Assets Land building investments plant and machinery stock or cash in hand. For example if you debit an account in a journal entry debit the same account in your ledger. The ledger may be in loose-leaf form in a bound volume or in computer memory.