Journal Entry, Ledger and

Trial Balance
Ari Purnomo Aji
Journal Entry?

Transaction that occur debit and credit

Recorded chronologically
Short description
 Journal is called the book of original entry
Journal is also called a day book
Journal is called chronological book
Journal is called "assistant to ledger"
The amount is written in two columns
Narration is written below each entry
Characteristics?
 How the advantages?
No possibility of any transaction being omitted.
Can be easily ascertained when and why a transaction has taken place.
No possibility of committing any mistake in writing the ledger.
Not necessary to repeat them in ledger.
Shows the complete story of a transaction in one entry.
Any mistake in ledger can be easily detected by checking journal.
 Format of Journal Entry

Date Particulars L.F Debit Credit

Account to be Debited
Account to be Credited
10-11-17 Equipment Furniture 104 $16,000
Cash 101 $16,000
(Buy furniture with cash)

Example :
Purchased furniture from Furniture Store on 10 November 2017 for
$16,000.
 What is ledger?
The books in which all the
transactions are recorded in a
summarized form.
Characteristics of Ledger

It has two identical sides

The totals of the two sides represents balance
At the year end, there is closing balance
The closing balance becomes the opening balance in the next year
 Format Of Ledger Find out transactions in
the journal entry

A/C. Name : A/C. Number :

Balance
Date Particulars J.R
Debit Credit
Record the
date
Opening Balance
transaction

Record the Record the

Give explanation page number amount
of the
journal
Format Of Ledger
A/C. Name : Cash A/C. Number : 101
Balance
Date Particulars J.R
Debit Credit
Opening Balance $ 50.000
10-11-17 Purchasing Equipment Furniture 1 $16,000
31-12-17 Balance $ 34.000

Example :
10-11-17 Equipment Furniture 104 $16,000
Cash 101 $16,000
 What is trial balance?
Trial balance is schedule or statement that
lists the ledger account balances at a point
in time compares.
Purposes of Trial Balance
Check the equality of debits
and credits
Provide information for use in
preparing final accounts.
Format of Trial Balance
Record the
Record the debit balance
account Write up the of each
number name of account
account

A/C No. Account Name Debit Credit

101
102 Add up
another
account

Totals

Count the totals

Format of Trial Balance

Example :

A/C No. Account Name Debit Credit

101 Cash $ 34.000
102
. ...

Totals $ 187.000 $ 187.000
THE END