Account Answer In One Or Two Sentence .(1 Marks)

At the time of commencement of the business, owner brings his personal assets like cash, stock of goods, machine, furniture etc in the business. When entry for this kind of transaction is passed in journal proper, it is known as opening entry.

While writing the books of accounts, possibilities of mistakes in recording the transactions cannot be ruled out. In order to rectify such mistakes, journal entry is to be passed known as rectification entries.

At the end of the year, to know true and fair profit and financial position of the business, certain accounting effects / entries are to be passed. They are known as adjustment entries.

At the end of the accounting year, out of the total accounts opened, accounts related to goods, incomes and expenses are closed by transferring them to Trading A/c or Profit and loss A/c. For this process when entries are passed, they are known as closing entries.

The transactions which are not recorded in the other subsidiary books are recorded in one special subsidiary book known as journal proper.

Generally traders do not keep subsidiary books for recording transactions of bills. In such a situation, transaction of bills are recorded in the journal proper.

Depreciation on fixed assets, loss due to natural calamity; written of goodwill, shortage of goods due to any reasons, etc. are internal transactions. They are all recorded in the journal proper.

At the end of the year, direct expenses accounts are transferred to Trading A / c.

At the end of the year, Purchase A / c and Sales A/c are transferred to Trading A/c.

At the end of the year, indirect expenses accounts are transferred to profit and loss account.

Entries passed to rectify the errors committed while recording economic transactions are called as rectification of errors.

The opening entries are passed in the journal proper at the beginning of the accounting year to record the balances of assets and liabilities owned and possessed by the business enterprise.

Adjustment entry for closing stock of goods is to be passed at the end of the accounting year because of to know the correct gross profit or gross loss amount.

At the end of every accounting year, entries are to be passed for certain adjustment so that the true performance and true financial position of the business can be known.

The entries for certain items such as bad debts (further) written oft depreciation On fixed assets, closing stock, income receivable, expenses payable, etc. passed in the journal proper are called Adjustment entries.

Sometimes due to some reasons, the amount is to be transferred from one account to another account either partially or fully, such transfer is recorded in the journal proper. In the same way when an account is closed at the end of the year and transferred to another account the transfer entry is passed in journal proper.

The entry which is passed in the Journal proper to close one particular account and transfer its balance to another account is called Transfer entry.

At the end of the accounting year, accounts of incomes, accounts of expenses, accounts of goods. etc. are closed and transferred to trading account or profit and loss account. These entries for closing various accounts are known as Closing entries. All the types of closing entries are recorded in the journal proper.

Closing entries means entries given at the end of the accounting year to close various accounts.

The format of journal proper is like as journal book.

The transactions which are not recorded in any other subsidiary books are recorded in one special subsidiary book which is known as Journal proper.