Steps in Journalizing
The process of recording transactions in the journal is called journalizing. The steps to be followed to record business transactions in a journal are:
Step 1: Ascertain the accounts related to a particular transaction.
Step 2: Find the nature of the related account.
Step 3: Ascertain the rule of debit and credit, applicable for the related account.
Step 4: Record the date of the transaction in the ‘Date Column’.
Step 5: Write the name of the account to be debited in the particulars column along with the abbreviation ‘Dr.’ and the amount to be debited in the debit amount column.
Step 6: Write the name of the account to be credited in the next line starting with ‘To’ and the amount to be credited in the credit amount column.
Step 7: Write a brief explanation of the transaction as narration.
Step 8: Draw a line across the entire particulars column to separate one journal entry from the other.