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Journal Proper

Journal proper is a residuary book in which those transactions are recorded which cannot be recorded in any other subsidiary book. Any transactions which do not form part of cash book, purchase book, sales book, purchase returns, sales returns, bills receivable and bills payable are recorded in journal proper. Listed are the types of transactions which finds place in journal proper

  • Opening entries: To bring the closing balances of all accounts in the new book in the new financial year from the previous year, opening entries are passed.
  • Closing entries: Closing entries are recorded at the end of the accounting year for closing the accounts relating to expenses and revenues. These accounts are closed by transferring the balances to the Trading and Profit and Loss Account.

Example: Total salaries paid ₹ 5,00,000 for the year closing Dec. 31st. Give the closing entry.

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