Journal Proper

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Today we are going to discuss about the next topic on Books of Orginal entry that is nothing but Journal Proper,

Here we are going to dicuss about open entries, adjustment entries, transfer entries etc.

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 In Journal Proper we enter transactions which cannot be entered in any of the previously dicussed sub journals like Purchases book, cash book, sales book etc.

For example first let us dicuss about Opening entries


What are opening entries

If we take previous accounting period and current accounting period.

If you remember about the closing balances we discussed in the video Balancing of ledger accounts

What we do with closing balances we transfer them as opening entry in the current accounting period

So whenever we transfer closing entried from previous year to current year we call them as opening entry

For example In previous accounting period let us assume the capital A/c is like this

if you haven't watched our previous video on balancing of accounts please watch it for understanding this

So how we are going to balance to close this account

we will write as To Bal c/d and keep the amount

In the current accounting period we write it here on credit side as By Bal b/d

So this is an opening entry

So opening entries are nothing but the previous years closing entries

The next entries which we make in journal proper is Adjustment Entries

So what are Adjustment entries

If you remember the Accounting period Concept we discussed in our GAAP video

Expenses and Incomes incurred in a particular year should be accounted in the same year in which they have been incurred

What does this mean

For example if Current year we got sales of 1100 rupess but customer paid only 1000 stating that the remaining amount will be paid in next year

even though we got the income of this 100 rupees here still the amount will realised in next year can we call it as Outstanding income, yes

In the similar way if we paid next years rent in Advance

the rent paid is an expense for next year which we are incurring now itself can we call it as Preparid expense, yes


at the End of every Accounting period we take this oustanding and prepaid expenses and incomes and make Adjustments in our accounting books to reflect the correct profit & loss for this accounting period

Those Adjustments are called Adjustment entries, we are having a seperate chapter to learn about entering Adjustments which we discuss seperately

The next entries we are going to discuss is Rectification entries

Let us see what are rectification entries

If have made a wrong entry and you found it in later stage where you cannot overwrite the wrong entry, then we will go for what we call as rectification entry

For example we have purchased goods From XYZ co

But you made a wrong entry stating that you purchased goods from whome here we written it wrongly as ABC Co A/C


The Correct entry should be this where we need to debit our account to XYZ co A/C

So to rectify this we make rectification entry in the following way where we debit the ABC Co A/C and Credit the XYZ Co A/c

So this is called as rectification entries which is made to correct the wrong entry at later stage

The next entries we are going to discuss is Transfer entries.

to understand transfer entry let us take an example

 MR.A has taken loan from our business keeping Mr.B as surety.

If A has defaulted the loan who will be responsible?

its obviously Mr.B who has to pay the loan as B has given surety for A

So if this happens

means if A defaults the loan then we transfer the loan amount as debit to Mr.B's account

So the intial entry when A has taken loan will be like this

Then the transfer entry when A defaults the loan will be like this where we are debiting the B' s account

So this is called as what transfer entry where we are transfering the loan amount from A to B

So finally we enter those transactions in Journal Proper which we can't record in any other sub journals, so that's all about sub journals

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Our next video will be posted on next sunday that is 18 Aug 2019. See you next week ba-bye

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Hello Guys,

Welcome Back to Veera's Channel

ppt - Today We are going to discuss the next subsidiary book called Journal Proper The entries in it like opening entries, Adjustment entries, rectification entries Transfer entries etc.

Video - Before we continue this class, don't forget to subscribe to our channel so that you will get immediate update whenever we post new videos.

If you haven't watched our previous videos I strongly recommend to watch them before continuing with this class for better undertanding.

After watching this video if you have any doubts please mention them in the below comments session So that we answer them in the coming videos.

With no further delay lets start



Hope You Enjoyed our Class if you like this video please click on like button below and don't for forget to subscribe.

We will post our next Video on coming sunday that is on 18 - Aug -2019 so don't miss it see you next week

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