In basic accounting, the beginner should know the procedure for journalising. In this procedure, students can understand how to write transactions in journal. Journal is made by five columns. In first column, date of transaction is written, in second column journal entry is written, in third column, ledger folio (L.G.) number is written. It is the number posted in ledger. It is very useful for checking reference in future at the time of auditing. In fourth column, debit amount is written and in fifth column credit amount is written. Before passing journal entries two things must be remembered.
Ist thing: What are the two account which will be showed.
2nd thing: Which account out of both will debit or credit.
In India, accountant writes Dr. for debited account and To for credited account. After abandoning some space below of journal entry, a narration is written for more clarification of transaction’s recording.
