How to Journalise? Video Lecture | Accountancy Class 11 - Commerce

how to journalize how to journalize now
we know the rules of debit and credit we
have to know exactly how a transaction
is recorded it is recorded first in a
journal that's why we call this how to
journalize are the rules of journalizing
the format of a journal or how it is
entered in a journal we shall discuss we
shall come to in a minute but let us
understand how to analyze what are the
rules of journalizing first and foremost
we will identify the transaction and
identify the accounts involved so once
you know what is the transaction we need
to record we will then identify the
accounts involved let's say buying off
purchase a sorry
buying off furniture purchasing
furniture for cash so what are the two
sides in word you will have furniture
and we will have cash for nature comes
in and cash goes out so identify the
accounts in work so we've got the
transaction is what is the transaction
identify the transaction that is
purchase of furniture for cash is the
transaction what are the accounts
involved it is furniture and it is cash
classify each account you tape and
decide is it in essence is it a
liability is it an expense is it an
income so what is furniture it is an
asset what is cash it is an asset okay
so we have done classified you first
identify the transaction we have
identified the house involved then we
have classified is it asset is it
liability expense or income in this case
we have two assets then apply the food
what is the rule we did increase in
asset is a debit increase in asset is a
debit therefore furniture is a debit
decrease it is not given here but if you
increase in asset is Debbie
it it means it means decrease in asset
and decrease in expense yes is credit is
credit right so cash there is a decrease
because we've paid cash cash has gone
out therefore this would be credit
therefore debit and credit represents
the two aspects of a transaction there
will always be a debit in a transaction
and an equal amount of credit in the
transaction so what do we do identify
the transaction what is identifying of
the transaction in this instance example
we consider purchase furniture for cash
then identify the accounts in one
what were the your columns in one
furniture and cash then classify what is
the classification what is what we job
it is an asset what is cash it is an
asset okay next apply the rule what is
the rule
increase in an asset you debit increase
in an asset you debit decrease in an
asset you credit in this case both were
assets increase was furniture therefore
I will debate furniture and I will
credit cash because cash has come
so whatever words increase in assets and
expenses debit decrease in assitant
expenses therefore credit in queens and
liability and income is credit therefore
therefore decrease in liability and
income is is decreases debit decrease in
liability is debit decrease in income is
that this is the same chart that we had
done before you take asset liability
debit cred TR and C as if I take
increase in asset we will debit write
decrease in asset we will credit
increase in liability we will cry
decrease in liability divided