Role of Journal in Practical System of Book-keepingOriginally, there used to be only
one book of prime record, viz. journal, in which all transactions were entered.
In this, transactions were classified into debits and credits and then posted to
the ledger. The procedure has been explained in chapters III and IV. Gradually,
'Practical System of Book-keeping' developed which has been explained in chapter
V and VI. With this development now transactions of similar nature are recorded
in subsidiary books. So you have separate subsidiary books to record
transactions relating to purchases, sales, returns, bills, cash and bank. But
still there are some entries, which cannot be passed in any of the subsidiary
books and therefore have to be passed in the journal. Following transactions are
still recorded in the journal:
(1) Opening entries. At the
beginning of the year, the opening balances of assets and liabilities are
journalized.
(2) Closing entries. At the end of
the year final accounts are prepared. For preparing these accounts various
accounts are to be transferred to the trading and profit and loss account which
is done by means of journal entries.
(3) Rectification entries. When any
error is detected in writing up the books then it is rectified by means of
suitable journal entry.
(4) Adjustment entries. Since
accounting follows "accrual concept" therefore adjustments has to be done at the
end of the year regarding:
(a) expenses incurred but not paid;
(b) expenses paid but benefit to be
available in the next period ;
(c) income becoming due but not
received;
(d) income received in advance; and
(e) charging depreciation on fixed
assets etc. The adjustments are incorporated in the account books by means of
journal entries.
(5) Transfer entries. If any amount
is to be transferred from one ledger account to the other, then it is done by
means of journal entries.
(6) Miscellaneous entries:
(a) Purchase and sale of fixed
assets on credit;
(b) Writing off of losses due to
bad debt, fire, accidents etc ;
(c) Any extra concession to be
allowed to any customer or any charge to be levied after the issue of the
invoice; and
(d) Any other item for which no
subsidiary book has been maintained.
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Central Goods and Services Tax (CGST) Rules, 2017 Draft government Approved Format Under Goods and Services Tax - Invoice Rules What is GST Compliant Business? What are the specific mandatory fields in an GST compliant invoice? Why the invoice an important financial instrument? What are Registered and Un-Registered Dealers? There is a lot for your business to catch up on those links along with online tax filing and registration for trading. Give us the details of required work you want in the off-the-shelf VAT accounting system and we shall make it GST compliant invoicing and accounting for your business at nominal additional charges. Cheers. Happy Accounting. If you want to know the details of for making VAT/CST system compliant to GST system: Standard rate of $15 per man hour shall be applicable for making any of off-the-shelf VAT based accounting software systems into CGST/SGST Compliant Accounting. Give the details of customization required in any of our off-the-shelf VAT accounting systems made for various business to get a quote of additional charges. See demo of software on website. See official Indian Government CGST/SGST Specification on the panel above here. Click for more information on Value Added Tax (VAT). Free Download of Full Featured Software - Try Full Featured Software Before Order - Time Limited 30 days Full Featured Version of these software are available for download from our website www.freeaccounting.in. HiTech Billing, Accounting Software Off-the-Shelf versions are available for Business, Traders, Industry, Hospital, Hotel, Petrol Pump, Medical Store & Distributor, Automobile or Motorcycle Dealers, Newspaper or Magazine Publishers, VAT Accounting & Billing and Commodity Brokers. | ||||||
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