Journal Proper : Definition, Recording Process.

What is Journal Proper?

Journal Proper is the residuary books where those transactions are recorded that are not recorded earlier in any other subsidiary books such as Cash Book, Purchases Book, Sales Book, Purchases Return Book, Sales Return Book, Bills Receivable Book and Bills Payable Book.

Types of Journal Proper

Usually following entries are considered as journal proper:

  • Opening Entry
  • Closing Entries
  • Transfer Entries
  • Adjusting Entries
  • Rectifying Entries
  • Miscellaneous Entries

The above Journals are explained as follows:

i) Opening Entry: Opening entries are passed in the journal for bringing the beginning balances of various assets, liabilities and capital which presented on the balance sheet. In a word, all heads remains on the previous year’s balance sheet should be carried forward into current years and must be passed journal entries for opening entry.

Assets A/c ( Current & Non-Current)Debit
Liabilities A/cCredit
Capital A/cCredit

These entry should be passed on individual ledger account as an Beginning balance.

ii) Closing Entries: Closing Entries are passed in the journal for closing the nominal-accounts by transferring them to the Trading and Profit & Loss Account. Closing entries to be passed at the end of the accounting year, when the financial statements are prepared.

Income Statement AccountDebit
Salaries & Wages Account Credit

iii) Transferring Entries: Transferring entries are passed to transfer an amount to one account to another account.

Income Statement Account Debit
General reserve AccountCredit

iv) Adjusting Entries: Adjusting Entries are passed in the journal for unrecorded items i.e closing stock, depreciation of fixed stock outstanding and prepaid items. adjusting-entries- are passed at the time of preparing the final accounts of the company.

Salaries Account Debit
Salaries Payable AccountCredit

v) Rectifying Entries: To rectify the various errors a company is passed rectifying entries. Errors are usually committed at the time of posting, totaling, balancing etc.

Raw Materials Purchase AccountDebit
Unreal Pvt. Ltd AccountCredit

v) Miscellaneous Entries: Besides above entries there are some entries to be passed in the journal which is not often happened in the organisation. The list of miscellaneous entries are as follows:

  • Shares in kind: Sometimes any shareholders brings his capital in kind but not in cash, such transaction can be recorded only in the journal proper.
  • Purchase of Non-Current Assets on credit to be passed in Journal proper book.
  • Disposal of Non-Current Assets (other than stock in Trade) which are sold on credit to be passed can be recorded in journal proper because such transactions will not be recorded in sales day book as this revenue don’t come from the normal course of business.
  • Return of Non-current Assets (other than stock in trade) which is bought on credit to be recorded in journal proper because such transactions will not be recorded in purchase return book.
  • Endorsement of Bills Receivable to a creditor.
  • Dishonor of Bills Receivable (not discounted with bank).
  • Cancellation of Bills Payable.
  • Abnormal loss of Stock in Trade/other assets by theft, accident, fire, etc.
  • Writing off Bad debts.


However, the Journal Proper book is the book where day to day business transactions are not recorded. This books records all the necessary expenditure which is required to close the books of accounts and prepare the final accounts. Journal proper book is the part and parcel elements to present a accurate and exact picture of the company.