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

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FAQs on Example: How to Journalise? Video Lecture - Accountancy Class 11 - Commerce

1. How to journalise transactions?
Ans. To journalize transactions, you need to follow these steps: 1. Identify the accounts involved in the transaction. 2. Determine the type of accounts (assets, liabilities, equity, revenue, or expense) affected by the transaction. 3. Decide the appropriate journal entry format based on the account type. 4. Record the transaction in the journal by debiting and crediting the respective accounts. 5. Include a brief description of the transaction in the journal entry.
2. What are the different types of journal entries?
Ans. There are several types of journal entries commonly used: 1. Simple Journal Entry: It involves a single debit and a single credit. 2. Compound Journal Entry: It involves multiple debits and/or credits. 3. Opening Journal Entry: It is used to record the initial balances when starting a new accounting period. 4. Adjusting Journal Entry: It is made to adjust certain accounts at the end of an accounting period. 5. Closing Journal Entry: It is made to transfer temporary account balances to the appropriate permanent accounts at the end of an accounting period.
3. How do you record a cash transaction in a journal entry?
Ans. To record a cash transaction in a journal entry, you need to: 1. Identify the accounts involved, such as Cash (an asset account) and the account representing the transaction. 2. Determine if the cash is received or paid and whether it increases or decreases the account balance. 3. Debit or credit the Cash account based on whether it increases or decreases. 4. Debit or credit the other account involved in the transaction accordingly. 5. Include a brief description of the transaction in the journal entry.
4. What is the purpose of journalizing transactions?
Ans. The purpose of journalizing transactions is to have a chronological record of all financial transactions in a business. It helps in maintaining accurate and reliable accounting records by providing a detailed account of each transaction. Journal entries serve as a basis for preparing financial statements, analyzing business performance, and ensuring adherence to accounting principles and regulations.
5. Can you provide an example of a journal entry?
Ans. Sure! Here's an example of a journal entry: Date: January 10, 20XX Account Title: Cash (Debit) Account Title: Sales Revenue (Credit) Description: Recorded cash sales for the day Amount: $500 In this example, we are recording a cash sale of $500 in the Cash account (debit) and increasing the Sales Revenue account (credit) by the same amount. The date and a brief description are also included in the journal entry.
82 videos|105 docs|42 tests

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