The book of original entry is the:

Journal. Transactions are first recorded in the journal.

Recording in the journal is called:

Journalising. Journalising means passing journal entries.

Explanation given below a journal entry is the:

Narration. Narration explains the entry.

An entry involving more than two accounts is a:

Compound entry. Compound journal entry.

Goods purchased on credit from Ravi: which account is credited?

Ravi. Ravi (the giver) is credited and Purchases is debited.

Maharashtra State Board · HSC Commerce · Class 11 (Std XI)

Class 11 Book Keeping and Accountancy Chapter 3: Journal

Short notes, key concepts, quick revision and practice MCQs with answers

The Journal is the book of original entry. Every transaction is first recorded here in chronological order with a debit, a credit and a narration before posting to the ledger.

Key concepts: Journal

Journal: Book in which transactions are recorded in date order for the first time. Recording is called journalising.
Format: Date, particulars (Dr and Cr accounts), Ledger Folio (L.F.), debit amount, credit amount and narration.
Narration: A brief explanation of the transaction below the entry.
Compound journal entry: An entry involving more than two accounts.
Opening entry: Records the opening balances at the start of a new year.
Advantages: Chronological record, reduces errors and helps trace transactions.
GST (Goods and Services Tax): One nation, one tax, in force from 1 July 2017. Rates: 0% (zero rated), 5%, 12%, 18% and 28%. Goods carry an HSN code and services an SAC code on the tax invoice.
Recording GST in the Journal: Within the state, GST is split equally into CGST and SGST. On purchases debit Input CGST A/c and Input SGST A/c; on sales credit Output CGST A/c and Output SGST A/c. Example: furniture ₹30,000 @ 18% = Furniture 30,000 + Input CGST 2,700 + Input SGST 2,700 = ₹35,400.

Quick revision: important points

Journal = book of original entry.
Ledger Folio column is filled at the time of posting.
Goods withdrawn by owner: debit Drawings, credit Purchases.
GST on purchases is Input tax (debit); GST on sales is Output tax (credit).
Trade discount comes off first; GST is charged on the value after trade discount. Cash discount is worked out on the value of goods.
Placing an order is not a transaction, so no entry is passed.

Practice MCQs with answers

The book of original entry is the:
1. Journal
2. Ledger
3. Trial balance
4. Balance sheet
Show answer
Answer: A. Journal
Transactions are first recorded in the journal.
Recording in the journal is called:
1. Journalising
2. Posting
3. Balancing
4. Casting
Show answer
Answer: A. Journalising
Journalising means passing journal entries.
Explanation given below a journal entry is the:
1. Narration
2. L.F.
3. Folio
4. Balance
Show answer
Answer: A. Narration
Narration explains the entry.
An entry involving more than two accounts is a:
1. Compound entry
2. Simple entry
3. Adjusting entry
4. Closing entry
Show answer
Answer: A. Compound entry
Compound journal entry.
Goods purchased on credit from Ravi: which account is credited?
1. Ravi
2. Purchases
3. Cash
4. Sales
Show answer
Answer: A. Ravi
Ravi (the giver) is credited and Purchases is debited.

All Class 11 Book Keeping and Accountancy chapters

Class 11 Book Keeping and Accountancy notes: all chapters