Financial Accounting - Journal - What It Is, Types, and Bills/Imprest Recording

Oct 28, 2026

Financial Accounting section explains the meaning and purpose of a journal as a book of original entry where business transactions are recorded in chronological order, followed by journalizing and posting to ledger accounts. It describes the structure of journal entries using date, particulars, ledger folio, debit and credit columns. It also covers different journal-entry types—single, compound, and opening entries—then extends to bills receivable and bills payable books, including due dates, days of grace, and what details each book records. Finally, it introduces the petty cash book, imprest system, and key advantages.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages32

Reading Time1 h 21 min

AccessFree to download

Journal in Financial Accounting

Meaning and Process (Journalising and Posting)

Format of Journal Entries

Date, Particulars, L.F., Debit and Credit Columns

Types of Journal Entries

Single Entry

Compound Entry

Opening Entry

Bills Receivable Book

Meaning and Use

Recorded Details

Due Date and Days of Grace

Bills Payable Book

Meaning and Use

Recorded Details

Petty Cash Book and Imprest System

Petty Cash Book

Imprest System

Advantages of Petty Cash Book

FINANCIAL ACCOUNTING -IJOURNAL The word journal has been derived from the French word 'Jour'which means a day.So,journal means daily.Journal is the book of original entry in which business transactionsare recorded in chronological order.i.e.,transactions are recorded daily in the journal as andwhen the transactions take place.journal,is a book of original entry or prime entry or primaryentry or preliminary entry,or first entry. Record of business transactions in the journal is known as Journal entry.The processof recording the transactions in journal is called as journalising.The transfer of journal entryto a ledger account is known as ‘posting'. In the books of……….Journal | Date | Particulars | L.F | Debit
(Rs.) | Credit
(Rs.) | | --- | --- | --- | --- | --- | | Year
Month
Date | Name of Account to be debited
To,Name of Account to be credited
(Narration) | | XXXX | XXXX | Date Column:In this column the date of the transaction is recorded.While entering thedate,the year may be written at the top,then the month and then the particular date. Particular Column:Under this column,first the names of the accounts to be debited withthe word Dr.’,then the names of the accounts to be credited after leaving a little space on the left and preceded by the word ‘To’.and lastly,the narration(i.e.a brief explanation of the transaction)are entered. L.F(Ledger Folio)Column:Under this column,the ledger page number containing therelevant account is entered at the time of posting. Debit amount Column:Under this column,the amount to be debited is entered. Credit amount Column:Under this column,the amount to be credited is entered. DIFFERENT TYPES OF JOURNAL ENTRIES The journal entries may be of the following types: (i)Single entry (ii)Compound entry (iii)Opening entry Single entry:Single entry is an entry in which only two accounts are involved,one accountis debited and another is credited. Compound entry:Compound entry is an entry in which more than two accounts areinvolved.Either more than one account is debited or more than one account is credited orboth. Opening entry:Through opening entry the balances of assets and liabilities at the end of theprevious accounting year are brought forward to the current accounting year. BILLS RECEIVABLE AND BILLS PAYABLE BOOK Bills receivable refers to bills drawn,the payment for which has to be received.Billsreceivable book is also called ‘Bills Receivable Journal'.It is used to record the full detailsof bills received from customers and others. Bills receivable book records the bills drawn by the firm on customers who acceptthem. Bills receivable book contains the details relating to bills received by the firm likedate of receipt,the person from whom received,acceptor,bill date,amount,term,duedate etc., Entries are made in the book whenever bills are received.Immediately personalaccount in the ledger is credited. Bills Receivable Book | Date of
receipt | From
whom
receive
d | Name of
Acceptor | Where
payable | Date
of Bill | Term | Due date
of the bill | L.F. | Amount | Remarks | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Due date and days of grace When a bill is drawn payable after a specified period,the date on which the paymentshould be made is called 'Due date'.In the calculation of the due date,three extra days areadded to the specified period of the bills called 'Days of grace'.If the date of maturity fallson a holiday,the bill will be due for payment on the preceding day. Bills payable book This book is also called 'Bills Payable Journal'.It is used to record all the details of billspayable accepted by the firm. Bills payable book records all the bills accepted by the firm in favour of suppliers. Details recorded in the bills payable book are the names of the parties whose bills areac

FAQs

What is a journal in financial accounting and why is it used?

A journal is the book of original entry where business transactions are recorded in chronological order, as and when they occur. It serves as the first place where transactions are documented before transferring them to ledger accounts.

What is the difference between single and compound journal entries?

A single entry involves only two accounts—one account is debited and another is credited. A compound entry involves more than two accounts, where more than one account may be debited and/or credited.

How are due date and days of grace calculated for bills?

When payment is due after a specified period, the payment date is the due date. In calculating it, three extra days called days of grace are added, and if maturity falls on a holiday the bill is due on the preceding day.

Oct 28, 2026

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