Making Account Guideline For Preparation Of Journal Account

Steps 1: Identify the transaction type and journal rules

Transaction Type

Unilateral benefit transaction: A Transaction Between Two Persons In Which One Receives The Benefit And The Other Agrees To Receive The Benefit After A Specified Number Of Days, Or in which one has already received the benefit and the other will now receive the benefit.

How to enter a unilateral benefit transaction in the journal:

D: If the company is receiving the benefit, in the Debit method,
C: If the company is giving the benefit, in the Credit method

Transaction details should be recorded in the journal account.

Debit method

D: What benefits are received?

C: Who gives benefits?

Credit method

D: Who receives the benefits?

C: What benefits goes out?

Transaction Type

Bilateral benefits transaction: If The Business And Others (Customer Or Supplier) Receive The Benefit On The Same Day It Is A bilateral benefit transaction.

How to enter a bilateral benefit transaction in the journal:

Details of both debit and credit should be recorded in the journal account.

Transaction details should be recorded in the journal account.

How To Identify The Transaction

Transaction Date TransactionInformation Date Actual Payment Due Date Or Payment Date Payment Transaction Transaction ID
01/04/2024 Purchased Stationery From GK Shop & Paying $2000 Cash. (01/04/2024) 01/04/2024 20000 01/04/2024 20000 Bilateral Ct87
11/04/2024 Tools Box Were Purchased From JK Tools Shop $1200 (Credit) (11/04/2024) 11/04/2024 12000 - - Unilateral Cr401
24/04/2024 Paid $1200 By ABC Bank Check To Jk Tools Shop 11/04/2024 12000 24/04/2024 12000 Unilateral Cr401
20/05/2024 $800 Was Transferred From The Profit Account To The Revenue Reserve Account 20/05/2024 800 Contra Tr251

We will see about the Contra entry later in the accounting accessibility