Journalising is a systematic process of recording financial transaction. Such recording are made in terms of debit and credit. In it, financial transactions are recorded in the original book.
Rules of journalising
Every financial transaction of a business organization has dual effect.It means that every financial transaction of a business involves at least two accounts. One account is debited and the other account is credited.
Before journalising a transaction, following three steps must be borne in mind.
1. Firstly, we need to find out the two aspects or two fold effects of a transaction.
2. Secondly, we need to identify the accounts whether they are personal, real or nominal accounts.
3. Finally, we need to use the rules of debit and credit.
There are two concept available for recording financial transactions of business organization. They are:- Traditional concepts and moder concept. Traditional concept of journalising is also known as British Approach and modern concept of journalising is also known as American Approach.