16.1.1. Meaning of Journal

Try these first

1. 1.

   Define a journal entry.

   Hint

   Think about what information you would need to record a transaction.

2. 2.

   What system does the journal follow in recording transactions?

   Hint

   Remember, what does double-entry mean in accounting?

3. 3.

   What is the primary purpose of a Journal in accounting?

   • To summarize transactions
   • To record transactions chronologically
   • To create a trial balance

   Hint

   Think about where transactions are first recorded.

4. 4.

   True or False: A Journal entry can only have one debit and one credit.

   • True
   • False

   Hint

   Reflect on the types of entries we've discussed.

5. 5.

   You purchase office supplies worth ₹2,500 but pay only ₹1,000 in cash. What will be your journal entry?

   Hint

   Consider how much is paid in cash and what remains as payable.

6. 6.

   Assume you have an adjusting entry at the end of the period for ₹750 of unpaid rent. What would you record?

   Hint

   Think of the expense incurred but not yet settled.