Journal/Day Book JSS1 Business Studies Lesson Note

TOPIC: JOURNAL / DAY BOOK

A journal is a book of original entries that contains daily records of business transactions. Each record is in the general or special journal.

The journal could be general or special.

1. GENERAL JOURNAL: This is used to record all transactions (both sales and purchases). It contains the date, amount to be credited, debited, and description of goods. The general journal is also called JOURNAL PROPER.

USES OF GENERAL JOURNAL

(i)                  It is used for opening and closing entries

(ii)                It is used to correct errors

(iii)              It is used to record purchases and sales of fixed asset

(iv)              It is used to record transfers between accounts.

General Journal

2. SPECIAL JOURNAL: This is used to record only one type of entry. They are:

Sales Journal / Sales Daybook

Purchases Journal / Purchases Daybook

Return Inward Journal / Sales Returns

Return outward Journal / Purchases Returns

SALES JOURNAL

This is also known as a sales day book. It is used to record all goods sold on credit i.e. sales made for the trading period on credit and it is usually totaled and posted to the credit of the Sales Account. E.g.

May 5          Sold to Oluchi 5 bags of rice @ #1,000

May 10        Sold to Shotunde T. 6 bags of salt @ #250 a bag.

                                                         Sales Journal

3. RETURN INWARD JOURNAL

This is also known as Sales returns. It is used to record all goods sold but returned to the seller due to defects or substandard. The seller will issue a credit to the buyer. E.g.

May 7          Oluchi returned a bag of rice @ #1,000 a bag

May 12        Shotunde T. returned 2 bags of salt @ #250 a bag

                                             Returned Inwards Journal

EVALUATION

Define journal and explain 2 types of journal

Assignment

Write up Sales Journal for Mark Ventures June 10 sold to Afilaka. P. $ cartons of Chivita“ N500 a carton

June is sold to Jeanta A. 7 cartons of Indomie @ N450 a carton.

PURCHASES JOURNAL

This is used to record goods bought for resale. The information for the Purchase Journal is obtained from the invoice. The book is used mainly to record credit purchases. It is also known as a purchases day book.

E.g.

Papa Ajasco Purchase the following on credit from Marvic Nig. Ltd

May 10     Office stamp supplied            500.00

May 13     Office furniture                      2,100.00

May 20     Office equipment                   800.00

                                                         Sales Journal

4. RETURN OUTWARDS JOURNAL / PURCHASES RETURNS

It is used to record all goods bought but returned to the suppliers/sellers as a result of defect or substandard. The seller will issue a credit note to the buyer to the effect.

E.g:

Papa Ajasco returned these goods

May 15     Papa Ajasco returned office furniture           2,100.00

                                             Return Outwards Journal

Assignment

IBITOYE A. Purchase the following on credit from Marvic Nig. Ltd

June 10     Office stamp supplied            1500.00

June 13     Office furniture                      12,100.00

June 20     Office equipment                   1800.00

Write up the above transactions in the appropriate journal account