journal proper meaning
All those entries which cannot be recorded in any of the subsidiary books are recorded in the journal proper or general journal. The entries relating to cash book, sales book, purchase book, sales return book, purchase return book, bills receivable book, bills payables book are not recorded in the journal proper.
The following are the entries which are recorded in the journal proper:
(i) Opening entry
It is the entry which is entered in the journal proper by debiting all assets and crediting all liabilities and capital, all appearing as closing balances in the previous year. It is to be noted, opening entry is not posted in the ledgers rather these balances are written as ‘To
Balance b/d’ on the debit side of assets accounts or written as ‘By
Balance b/d’ on the credit side of the liabilities accounts.
(ii) Closing entries
When all nominal accounts are closed (written-off) at the end of the year by transferring their balances either to trading account or profit and loss account, the entries so passed to transfer nominal accounts are called closing entries.
(iii) Adjustment entry
An entry which is passed at the end of the year to make necessary adjustments in accounts to arrive at the true and fair view of the financial results is known as adjustment entry.
(iv) Rectifying entries
All such entries which are passed to rectify the errors or omissions are called rectifying entries. Rectifying entries don't involve cash or bank account. Such entries are recorded in the journal proper.
(v) Transfer entries
Transfer entries are passed in the journal from transferring an amount from one account to another account.
For example, Debtors include ` 3,000 from X and creditors include ` 3,000 due to X. Here the common amount of ` 3,000 will be set off.
Entry Creditors A/c Dr 3,000
To Debtors A/c 3,000
(vi) Miscellaneous Entries
In addition to the above mentioned entries, the entries relating to the following transactions are recorded in the journal proper.
(a) Purchase of assets on credit.
(b) Sale of assets on credit.
(c) Outstanding expenses.
(d) Accrued incomes.
(e) Entries relating to bad debts and provision for doubtful debts.
(f) Loss of goods due to fire.
(g) Dishonour of bills receivables.
(h) For the reversal of discount allowed or received on the dishonour of cheque.
(i) Interest an capital and drawings.
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