Week 2 – Jss 1 Third Term Business Studies Lesson Notes

WEEK TWO
TOPIC: JOURNAL / DAY BOOK
Journal is a book of original entry which contains daily record of business transactions. Each record in the general or special journal.
Journal could be general or special journal
1. GENERAL JOURNAL: Is used to record all transactions (both sales and purchases). It contains date, amount to be credited, debited and description of goods. General journal is also called JOURNAL PROPER.
USES OF GENERAL JOURNAL

1. It is used for opening and closing entries
2. It is used to correct errors
3. It is used to record purchases and sales of fixed asset
4. It is used to record transfer between accounts.

                     General Journal

Date

Particulars

Folio

Dr

Cr

 
 2. SPECIAL JOURNAL: Are used to record only one type of entry. They are:
Sales Journal / Sales day book
Purchases Journal / Purchases day book
Return Inward Journal / Sales Returns
Return outward Journal / Purchases Returns
SALES JOURNAL
This is also known as sales day book. It is used to record all goods sold on credit i.e. sales made for the trading period on credit and it is usually totalled and posted to the credit of the Sales Account. E.g.
May 5        Sold to Oluchi 5 bags of rice @ #1,000
May 10         Sold to Shotunde T. 6 bags of salt @ #250 a bag.
                    Sales Journal

 3. RETURN INWARD JOURNAL
This is also known as Sales returns. It is used to record all goods sold but are returned to the seller due to defect or substandard. The seller will issue a credit to the buyer. E.g.
May 7        Oluchi returned a bag of rice @ #1,000 a bag
May 12         Shotunde T. returned 2 bags of salt @ #250 a bag
                Returned Inwards Journal

 EVALUATION
Define journal and explain 2 types of journal
Assignment
Write up Sales Journal for Mark Ventures June 10 sold to Afilaka . P. $ cartons of Chivita” N500 a carton
June is sold to Jeanta A. 7 cartons of Indomie @ N450 a carton.