Principles of Accounting: General Journal transferring to new books

////Principles of Accounting: General Journal transferring to new books

Principles of Accounting: General Journal transferring to new books

ZIMSEC O Level Principles of Accounts Notes: General Journal transferring to new books

  • We have already looked at some of the uses of the General Journal
  • which is sometimes simply called the Journal or Journal Proper
  • We have also looked at an example where we made different types of entries into the Journal
  • Another use not illustrated in this example is where the Journal is used to transfer entries to new books
  • This was a prominent use in the days when accounting books where actual physical books
  • Nowadays the journal is also used by a business that was not keeping proper accounting records and now wants to start to do so
  • ┬áConsider the following example:

P Chiyanga has been in business for some years without keeping proper records. After talking to his nephew who is doing Accounting at a nearby school he has now decided to keep a double entry set of books. On 1 July 20X7 he establishes that his assets and liabilities are as follows:

  • Van $3 700, Fixtures $1 800, Stock $4 200,
  • Debtors : A Runesu $95, Z Zengeni $45,
  • Cash at Bank $860
  • Cash in hand $65
  • Creditors : Mohammed Mussa 129, Econet $410

Required:

  1. Calculate P Chiyangwa’s capital in this business
  2. Draw up the journal entries required to open a new set of books
  3. Show the opening entries in the various ledgers

Click here for the solution to this question

To access more topics go to the Principles of Accounts Notes.

By |2017-07-25T12:06:03+00:00July 25th, 2017|Notes, Ordinary Level Notes, Principles of Accounts Notes|Comments Off on Principles of Accounting: General Journal transferring to new books

About the Author:

He holds an Honours in Accountancy degree from the University of Zimbabwe. He is passionate about technology and its practical application in today's world.
%d bloggers like this: