I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

 EXAM FOCUS POINT 

An examination question might ask you to 'journalise' transactions which would not in practice be 

recorded in the journal at all. If you are faced with such a problem, you should simply record the debit 

and credit entries for every transaction.

BPP Tutor Toolkit Copy

---

PART C: THE USE OF DOUBLE-ENTRY AND ACCOUNTING SYSTEMS 

 

80

 

 

 

$   

$ 

31 January 

DEBIT 

Trade accounts receivable  

80 

 

 CREDIT 

Sales 

account 

 

80 

 

The provision of a hair-do on credit 

 

* Note. Suppliers who have supplied non-current assets are included among sundry accounts payable, 

as distinct from trade suppliers (who have supplied raw materials or goods for resale) who are trade 

accounts payable. It is quite common to have separate 'total accounts payable' accounts, one for trade 

accounts payable and another for sundry other accounts payable. 

In order to see how the journal is posted to the ledger accounts, we will look at the first two entries. 

CASH AT BANK ACCOUNT 

 

$   

 

$  

Capital a/c (jnl) 

2,000 

 

Brushes and combs account 

(jnl) 

50 

CAPITAL ACCOUNT 

 

$   

 

$   

 

 

Cash a/c (jnl) 

2,000 

 

BRUSHES AND COMBS ACCOUNT 

 

$  

 

$  

Cash a/c (jnl) 

50 

 

 

 

5.2 The correction of errors 

The journal is most commonly used to record corrections to errors that have been made in writing up the 

nominal ledger accounts. Errors corrected by the journal must be capable of correction by means of a 

double entry in the ledger accounts. In other words, the error must not have caused total debits and 

total credits to be unequal.  

Special rules apply when errors are made which break the rule of double entry. 

We will deal with errors later in your studies.