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Accountancy - Journal proper | 11th Accountancy : Chapter 6 : Subsidiary Books - I

Chapter: 11th Accountancy : Chapter 6 : Subsidiary Books - I

Journal proper

Journal proper is a residuary book which contains record of transactions.

Journal proper

Journal proper is a residuary book which contains record of transactions, which do not find a place in the subsidiary books such as cash book, purchases book, sales book, purchases returns book, sales returns book, bills receivable book and bills payable book. Thus, journal proper or general journal is a book in which the residual transactions which cannot be entered in any of the sub divisions of journal are entered. The usual entries that are passed through this journal are given below:

i.            Opening journal entry


ii.            Closing journal entry


iii.            Adjusting entries


iv.            Transfer entries


v.            Rectifying entries


vi.            Miscellaneous entries



(i) Opening journal entry

At the end of the accounting year, all nominal accounts are closed but the business has to be carried on with previous year’s assets and liabilities. Hence, these accounts are to be brought into the accounts of the current year. Journal entry made in the beginning of the current year with the balances of assets and liabilities of the previous year is opening journal entry. In this entry, asset accounts are debited, liabilities and capital accounts are credited.


Ramnath carried forward the following items. Make the opening entry in journal proper as on 1st January, 2017.

Cash           30,000       Stock                    Rs. 15,000                    

Furniture    Rs.    3,000 Sundry Creditors           Rs. 10,000                    

(ii)  Closing journal entry

At the end of the accounting period, all the ledger accounts relating to purchases, sales, purchases returns, sales returns, stock and other accounts concerning expenses, losses, incomes and gains are closed by transfer to trading and profit and loss account so that financial statements can be prepared. It should be noted that closing entries are made for nominal accounts only.


Example: Salaries account Rs. 10,000. The closing entry as on 31st December, 2017 is:

iii) Adjusting entries

After preparing the trial balance, but before preparing the final accounts, if any adjustment is required in the accounts for items or transactions left out, adjusting entries are made.


Book value of the machinery as on 1st January, 2017 Rs. 1,00,000. Rate of depreciation is 10% p.a. Adjusting entry as on 31st December, 2017 is:

(iv) Transfer entries

Transfer entries are passed in the journal proper for transferring an item entered in one account to another account. For example, transferring net profit of Rs. 5,000 to capital account, the following entry is passed:

Transfer Entry

(v) Rectifying entries

Rectifying entries are passed for rectifying errors which are committed in the books of accounts. Example

Purchase of furniture by a stationery dealer for Rs. 10,000 was debited to purchases account. 

Pass rectifying entry on December 31, 2017.

(vi) Miscellaneous entries

These are entries which do not occur frequently such as:

·        Credit purchases and credit sale of assets which cannot be recorded through purchases or sales book.

·        Endorsement, renewal and dishonor of bill of exchange which cannot be recorded through bills book.

·        Other adjustments like interest on capital, bad debts, reserves, etc.

·        Goods withdrawn by the owner for personal use.

·        Goods distributed as samples for sales promotion.

·        Loss of goods by fire, theft and spoilage.


Illustration 7

Record the following transactions of Vijay Electrical & Co., in the purchases book, purchases returns book, sales book and sales returns book.



Jan 1               

Purchased on credit from Preethi & Co.,

25 table fans @ Rs. 1,400 each

10 fans @ Rs. 2,000 each

Add: Auto charges @ Rs. 100


Jan 5               

Sold on credit to Sheela & co.,

10 electric iron box @ Rs. 1,250 each

20 electric stoves @ Rs. 450 each

Less: 10% Trade discount


Jan 10             

Purchased for cash from Brinda & Co.,

10 electric stoves @ Rs. 1,300 each


Jan 18

Returned to Preethi & Co.,

5 table fans being defective for which cash is not received Jan 20 Purchased from Sathya & Co.,

10 fans @ Rs. 1,200 each

Less: Trade discount 5%


Jan 21

Sheela & Co., returned 3 electric iron boxes as defective for which cash is not paid


Jan 23

Purchased from Elizabeth & Co., 10 water purifiers @ Rs. 4,700 each on credit


Jan 25

Sold on credit to M/s. Bhavani & Co., 7 fans @ Rs. 1,450 each


Jan 27

Returned to Sathya & Co., 2 damaged fans for which cash is not received



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