Courses for Kids
Free study material
Offline Centres
Store Icon

Journal Proper And Balancing The Accounts

Last updated date: 17th Apr 2024
Total views: 395.1k
Views today: 11.95k
hightlight icon
highlight icon
highlight icon
share icon
copy icon

Learn Journal Proper and Balancing the Accounts

The Journal Proper in the accounting system can be defined as the book for the entry for the transactions done in credit and all of these usually are not entered in other books. This is done in a chronological order i.e. all the credit transactions are recorded in the book in a proper order. The procedure and the form for the maintenance of such journals are similar to that of a simple journal.

The account balance can be defined as the amount of money that a user has in the financial repository, for example, a savings or checking account in a particular given moment. This amount is the net or total amount after factoring in credits and debits. When an account balance falls below zero then it is said to represent debt e.g. an overdraft is done on a checking account. For accounts that have recurring bills like electricity bills or a mortgage, the account balance can reflect such amounts which are owed by the account holder.

The journal entries consist of many different elements which include:

  1. Header which has the dates the entries have been made.

  2. Reference numbers or the journal entry number which can be used as an index and in the future retrieved or referred whenever it is required.

  3. Number of the account where transactions take place and the name of the owner who holds the account. The records are written in the first column.

  4. The amounts of debit are entered in the 2nd column.

  5. In the 3rd column, the credit column is entered.

  6. The footer has the description of the entries done in the journal.

All original records of a transaction are needed which helps an organization to keep a track of its activities. These original records are at times misplaced. However, important and rare transactions cannot be compromised. Few transactions (subsidiary transactions) do get recorded in the other books and hence to jot it down in one single book, these original records are recorded in Journal Proper (subsidiary book) and the Accounts are subsequently balanced.

Journal Proper Meaning

Journal Proper or General Journal is a simple book of chronological records of business transactions. This book of original entry (simple Journal) in which miscellaneous credit transactions which do not fit in any other books are recorded. It is also called a miscellaneous Journal. The form and procedure for maintaining this Journal are the same as that of a simple Journal.

Only those transactions, which cannot be conveniently recorded in any of the other books of original entry i.e., subsidiary books or which are not sufficiently numerous to necessitate a special book being devised for them, are recorded in this book.


The Use of Journal Proper is Confined to Record the Following Transactions

  1. Opening entries

  2. Closing entries

  3. Transfer entries

  4. Adjustment entries

  5. Rectification entries

  6. Entries for which there is no special Journal

  7. Entries for rare transactions


Uses of Journal Proper

Journal Proper is used for recording the following entries:

  • Opening Entries: Entries passed to open a new set of books by an entity which is either starting a new business or continuing business to open a new set of books at the beginning of an accounting period.

  • Transfer Entries: For transfer of any amount from one account to another.

  • Credit purchase and sale of fixed assets.

  • Rectification Entries: Entries needed to rectify errors in the books of accounts.

  • Adjusting Entries: Entries needed before preparation of final accounts for items like accruals, prepayments, depreciation etc.

  • Closing Entries: Entries needed to transfer the balances of nominal accounts to the Trading and Profit and Loss Account at the end of an accounting period.

  • Any other entries of irregular nature for which no special book of original entry is available. E.g. write off of bad debts, the allowance to debtors, abnormal losses etc.


Journal Proper Format

Journal Proper which is used for original records of an important and rare transaction which does not find a place in any of the subsidiary books of accounting is shown in Journal Proper. It is also known as a Miscellaneous Journal and it looks much like any other Journal. The distinct format of the same is shown below:







Types of Journal Proper

There are numerous subsidiary transactions which are to be recorded in different books. Hence each type of book is required to note down the different set of transactions. The types of Journal Proper to record the sets of subsidiary transactions are:

  1. Opening Entry: Opening entries are passed in the journal for bringing the beginning balances of various assets, liabilities and capital which are presented on the balance sheet.

  2. Closing Entries: Closing Entries are passed in the journal for closing the nominal accounts by transferring them to the Trading and Profit & Loss Account. Closing entries to be passed at the end of the accounting year when the financial statements are prepared.

  3. Transferring Entries: Transferring entries are passed to transfer an amount from one account to another account.

  4. Adjusting Entries: Adjusting Entries are passed in the journal for unrecorded items like closing stock, depreciation of fixed stock outstanding and prepaid items. Adjusting entries are passed at the time of preparing the final accounts of the company.

  5. Rectifying Entries: To rectify the various errors, a company has passed rectifying entries. Errors are usually committed at the time of posting, totalling, balancing etc.

  6. Miscellaneous Entries: Besides the above entries, there are some entries to be passed in the journal which does not often happen in the organization.


Example of Journal Proper

Prepare the Journal Proper for the M/s A&B ltd. for March-2018. All the transaction related to the journal proper are shown below





Purchase machine from B



Salary of February unpaid



Wrongly debited to Mr A account instead of Mr B



Journal Proper







Machine A/C………Dr

To Mr B A/c

(being machine purchased on credit from Mr B)




Salary A/C……Dr

To Salary Outstanding A/C

(salary being due for February)




Mr B’s A/C…..Dr

To Mr A’s A/C

(rectified entry)



However, the Journal Proper book is the book where day to day business transactions are not recorded. This book records all the necessary expenditure which is required to close the books of accounts and prepare the final accounts. Journal Proper book is the part and parcel elements to present an accurate and exact picture of the company.

FAQs on Journal Proper And Balancing The Accounts

1. What is The Difference Between Journal And Journal Proper?

A journal refers to a daily book or a day-to-day book that is used to record the business transactions date-wise or chronologically. A journal proper maintains records of original transactions that are not usually mentioned in any accounting book because they do not occur frequently or are of not much significance.

2. What Are The Advantages of The Journal?

Journal provides records of all business transactions in one place as per the time and date basis. All transactions are recorded based on receipts or bills, so we can check the authenticity of each journal entries with their bills.

3. Which Transactions Are Not Recorded in Subsidiary Books?

Cash sales of goods and credit sales of assets are not recorded in this book. Other names of sales book are Sales Day Book, Sales Journal, Outward Invoice Book, etc.

4. What is the meaning of closed and opening entries?

The closed and opening entries are the type of ways that are done when entering transaction records in the journal paper. Opening entries are the entries when one opens a new business. These are the initial balances of various assets, capital and liabilities which are presented on a balance sheet. On the other hand, the closing entries are done during the end of the year. This involves the transfer of balance of all the expenses and income to trading accounts including the profit and loss. These are passed during the end of the accounting year when the statements of finance are prepared.

5. What are miscellaneous entries?

Miscellaneous entries can be defined as those entries which do not have a specific journal or a special journal. These can be done for goods distribution of free samples or goods destroyed or damaged by fire. Some of the rare transactions are also included in this journal proper and all these entries do not occur in the business regularly so there is no need for a separate account requirement.

6. What are adjustment entries and what are their examples?

Adjustments can be defined as the modification of accounts during the end of the accounting period. When there are events that affect the related period of accounts but are not recorded in the books and are left out, then this should be incorporated in the books before the final accounts are prepared. This is done by adjusting entries in the journal proper and is thus called adjustment entries. Some of the examples of the adjustment entries are rent outstanding, prepaid expenses and any commission that is received in advance.

7. What is the difference between available credit and account balance?

The available credit can be defined as the unused amount of credit which is available on the credit account. Available credit along with the account balance affects the credit score of a user. When the credit amount is low, it means that credit utilization is low too. If a larger credit amount is used which is more than the available credit then the credit score is declined unless the owner has arrangements for such over-the-limit transactions. Thus, overusing such a large amount of credit can increase the charge fee. On the other hand, the account balance on the credits is the total amount that is to be transferred to the credit amount at the beginning of a statement. Any debt that was rolled over the past months also represents the account balance on credit which can include interest charges.

8. Why is journal record important to have in accounting?

The journal acts as a record book which can help maintain expenses which can be quite beneficial for a company. Some of the importance of journaling is given below:

  • It helps maintain records of the expenses of a running business including transactions.

  • The journal records the transactions done by the business accordingly and in a chronological order.

  • Journals reduce the errors and omission of transaction records and other records which were incomplete. Thus, the journal system acts as a control system.