How to Record Journal Entries in Accounting

Journal is otherwise known as the Book of Prime Entry as every accounting transaction primarily records in it. All accounting transactions are recorded here in chronological order. 

The transactions have debit and credit amounts. In other words, each debit amount of entry has an equal corresponding amount of credit which is known as double entry recording.


Here are some examples of journal entries:

July 1 2014	Started business with $1,000 cash
July 3 2014	Paid $800 of cash into bank account
July 7 2014	Bought goods on credit from: X $40 and Y $80
July 10 2014	Bought office supplies for $30 cash
July 12 2014	Sold goods on credit to: A $40 and B $50
July 15 2014	Returned goods to Yworth £15
July 16 2014	Paid wages by cheque $100
July 20 2014	Bought office fixtures for $200 paying by cheque
July 25 2014	Cash sales made for $50
July 30 2014	Sent cheque to X for $40

 
Use excel to enter the transactions with ease.These are recorded in the following way:

Journal Entries for the month of July, 2014
Date	Transaction details	Account Name
			DR	CR
1-Jul-14	Business started with cash	Cash	$1,000
		Capital		$1,000
3-Jul-14	Cash deposited into bank	Bank	$800
		Cash		$800
7-Jul-14	Bought goods on credit from X and Y	Purchases	$120
		X		$40
		Y		$80
10-Jul-14	Office supplies bought	Office Supplies	$30
		Cash		$30
12-Jul-14	Sold goods to A and B  on credit	A	$40
		B	$50
		Sales		$90
15-Jul-14	Goods returned to Y	Y	$15
		Returns Outward		$15
16-Jul-14	Wages paid by cheque	Wages	$100
		Bank		$100
20-Jul-14	Office fixtures bought by paying cheque	Office Fixtures	$200
		Bank		$200
25-Jul-14	Goods sold for cash	Cash	$50
		Sales		$50
30-Jul-14	Cheque sent to X	X	$40
		Bank		$40