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The Bookkeeping Journal format

Expenditures Ledger Accounts

Background

The Bookkeeping Journal format

Every row in the journal is designated for registering the data from some transaction.

After being registered in the journal, the data are automatically transferred to the two corresponding ledger accounts.

Registration in the journal is in chronological order, according to the date on which the transaction documents were received.

Example:

The following events occurred in May 2008 at the USA Chairs company:

On May 1, the company bought 100 kg of wood for $2,000 from the Africa Wood supplier. The number of the invoice received was 9270.
On May 2, the company received an invoice from the IEC for $800 in respect of electricity consumption in March-April 2008. The invoice number was 23811.
On May 5, the company sold 20 chairs to the Coffee and Pastry customer for $1,000. The number of the invoice issued was 122.
On May 9, the company paid Lisa James $2,000 in wages through check no. 123456.

Registration of these events in the journal is as indicated below:

Serial No.	Date	Debit Account (Receiving Ledger Account)	Credit Account (Giving Ledger Account)	Reference No.	Particulars of the Transaction	Sum
(1)	(2)	(3)	(4)	(5)	(6)	(7)
1	May 1	Purchase of raw materials	Africa Wood (supplier)	9270	100 kg wood	$2,000
2	May 2	Electricity expenditures	IEC (supplier)	23811	Electricity consumption 3-4/08	$800
3	May 5	Coffee and Pastry (customer)	Sales	122	Sale of 20 chairs	$1,000
4	May 9	Lisa James	Current account	123456	Salary for Lisa James	$2,000

Every row in the journal is automatically transferred to the two ledger accounts listed in Columns (3) and (4) above, as follows:

For the sake of simplicity, assume that the balance of each of the ledger accounts in the following examples, before the additions, is 0.

Raw Materials Purchase Ledger Account

Africa Wood Ledger Account (Supplier)

Electricity Expenditures Ledger Account

Particulars				Debit	Credit	Balance
Date	Reference	Contra Account	Particulars of Transaction	Debit	Credit	Balance
May 2	23811	IEC (supplier)	Electricity consumption Mar.-Apr./08	$800		$800 D

IEC Ledger Account (Supplier)

Particulars				Debit	Credit	Balance
Date	Reference	Contra Account	Particulars of Transaction	Debit	Credit	Balance
May 2	23811	Electricity Expenditures	Electricity consumption Mar.-Apr./08		$800	$800

Coffee and Pastry Ledger Account (Customer)

Sales Ledger Account

Lisa James (Employee) Ledger Account

Current Account Ledger Account