Journalising in Accounting

The process of analysing the business transactions under the heads of debit and credit and recording them in the journal is called journalising.

An entry made in the journal is called a journal entry.

The steps followed in journalising are: 1) Analyse the transactions and identify the accounts involved, 2) Classify the accounts under Personal, Real, or Nominal account, 3) Apply the rules of debit and credit, 4) Determine which account is to be debited and credited, 5) Record the date of transaction, and 6) Enter the details of the debit and credit in the journal.

<p>The name of the account to be debited is entered in the particulars column followed by 'Dr.' at the end, very close to the left hand side, in the same line.</p> Signup and view all the answers

<p>The amount to be debited is entered in the debit amount column in the same line of the journal entry.</p> Signup and view all the answers