How is a journal entry recorded?

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ch.v.rama krishna rao, chirala

  • Nov 8th, 2007
 

A journal entry is recorded accourding to the rules of debit and credit.for example goods sold for Rs 50000 for cash ----to record this -- identify the accounts involved-- i.e.goods A/cand Cash A/cgoods is a real account and cash is also a real accountdebit and credit rule for Real accounts is DEBIT WHAT COMES IN CREDIT WHAT GOES OUT according to this--cash is coming to the organisation and goods is leaving from the organisation--Entry for this is Cash A/c Dr. 50000 to Goods A/c or Sales A/c 50000 ( For Cash Sales )

Journal Entries are recorded on a double entry system, ie debit and credit concept. In order to record a journal entry, the following steps need to be followed.
Enter the Journal entry number
Enter the Date of transaction
Enter the Debit item (as per the golden principles of accountancy)
Enter the corresponding GL folio number
Enter the Debit amount
Enter the credit item(as per the golden principles of accountancy)
Enter the amount in the credit column
Provide a brief description of the transaction
leave a single line before next transaction

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