BBA Notes Meaning Journal Entry Branch Account Bookkeeping

BBA Notes Meaning Journal Entry Branch Account Bookkeeping

BBA Notes Meaning Journal Entry Branch Account Bookkeeping :- In this article you can find related to bookkeeping and bookkeeping question answer and study materials of latest version and other site link like as fundamental of management , principle of economics, business mathematics and all subject of bba all semester. B.b.a latest news all information link you can find . thanks to coming our site and get latest news related to business and BBA Unit II very short Question Answer and Bookkeeping balancing of accounting trial balance bba 1st semester long question answer. If we talk about BBA then Bookkeeping and Accounting is one of the most important Topic. Bookkeeping is common to all semesters Here we are presenting BBA Bookkeeping and Accounting Study Material and Notes for all Semesters. BBA Bachelor of Business Administration in Bookkeeping and Accounting notes study material in this website most important chapter and Question paper BBA notes in this page more links to bba notes and study material and question paper mock paper. BBA in accounting and finance is an undergraduate commerce course. BBA study in bookkeeping and accounting, financial planning, economics, business organisation and other similar areas of operation in any business organisation. full BBA course three year degree course consists of Six semesters. the basic eligibility criterion for bba dgree is qualifying 10+2 or equivalent examination in any stream from a recognized board of the country.Bachelor of Business Administration (BBA) in Accounting programs combine the fundamentals of a business program with concentrated coursework in accounting. Find out what these programs entail and what students do after graduation.bba subject bookkeeping and accounting chapter wise notes study material, question paper, mock paper, sample paper, in this website study point to BBA notes. BBA Notes Meaning Journal Entry Branch Account Bookkeeping

BBA Notes Meaning Journal Entry Branch Account Bookkeeping
BBA Notes Meaning Journal Entry Branch Account Bookkeeping


Q.1.        Explain the meaning of term journal and state its significance. Discuss the different rules for journalising the transaction with suitable example.

Ans.       Journal : The word journal has been derived from the French word JOUR meaning daily records. Journal is a book of primer record for small firms.

According to Prof. Cartov, “The journal is originally used as a book of prime entry in which transactions are copied in order of date from a memorandum or waste book. The entries as they are copied are classified into and credits, so as to facilitate them being correctly posted, afterwards in the ledger”

Business transactions of financial nature are studied and classified as assets, liabilities, Capital, revenue and Expenses and accordingly debited or credited in the journal entry are passed in the following form:

                Example of Journal Entry— (BBA Study Material Notes )

Date Particulars L.F Dr.








The journal is subdivided into five columns. These columns as per above format are Date, Particular, L.F., Amount (debit). Amount (Credit) and narration.

  1. Date : The date of the transaction is written.
  2. Particulars : The names of accounts to be debited and credited are written.
  3. Ledger Folio : The page number of the ledger where the account is posted written.
  4. Debit Amount : The Amount to be debited is written.
  5. Credit Amount : The Amount to be credited is written.

Rules of Dr. and Cr.

  1. Personal A/c : Debit the Receiver

Credit the Giver.

  1. Read A/c : Debit what comes in

Credit what goes out.

  1. Nominal A/c : Debit all the Expenses and losses

Credit all the gains and income.

Advantages : The following are the main advantages of journal :

  1. Reduce Possibility of Errors : Since amount to be debited and credit are written simultaneously against each transaction, so possibility of occurrence of error is reduced.
  2. Facilitates Cross Checking of Account : If trial balance does not agree, journal facilitates. Checking of ledger entries. Thus accounts can be tailed easily.
  3. Facilitates Posting into Ledger : Since complete transaction in the form of debit and credit is given so there is no possibility of committing any mistake while posting journal entry into ledger.
  4. Provides Date-wise Record : Since transaction in the journal are recorded in chronological order or there is no possibility of any transaction to be left out recording.

Explain Branches of Accounting (BBA Notes Bookkeeping)

Account has Three main Branches :

  1. Bookkeeping and Financial Accounting : Which is concerned with recording and processing all transactions with outsiders and events affecting the financial position of the firm. This leads to the preparation of the annual profit and loss account (or similar statement) and the balance sheet.
  2. Cost Accounting : It seeks to ascertain the cost of each product of job produced or undertaken by the firm. In financial accounting, expenditure incurred is recording a such but, in cost accounting, it will be analysed jobwise or product wise. Unlike financial accounting, cost accounting has to depend a great deal on estimation.
  3. Management Accounting : It has the objective of collecting, systematically and regularly all such information as will help management in discharging its functions of planning control. Decision-making etc. It draws both on financial accounting and cost accounting.

Rules of Accounting Equations

  1. Capital : When capital is increased, it is credited and when some portion of capital is with drawn i.e. drawings are made, it is debited.
  2. Assets : If there is an increase in assets, this increase is debited in assets account. If there decrease in assets, this decrease is credited in assets account.
  3. Revenue Income : Owner’s equity is increased by the amount of revenue income.
  4. Revenue Expenses : Owner’s equity is increased by the amount of revenue expenses.
  5. Capital : When capital is increased, it is credited and when some portion of capital is with drawn i.e. drawing are made, it is debited.
  6. If assets is increased, liabilities is also increased, as furniture is purchased on credit. Here, furniture is increased and the amount of creditors is also increased.
  7. If an assets is increased, liabilities is also decreased, as cash paid to creditors. Here, cash is decreased and amount of creditors is also decreased.
  8. In accounting equation, assets are equal to equities whether these equities are owner’s equity or outsider’s equity owner’s equity and partly outsider’s equity.
  9. When one assets is decreased, other assets is increased, e.g. sale of furniture for cash. Here, furniture is decreased and cash is increased.
  10. Sometimes when one assets is increased and other assets is decreased e.g. purchase of furniture for cash. Here, furniture is increased and cash is decreased.

Merits of Double Entry System

Merits of double entry system are the same which have been described earlier under the heading of “Merits of Bookkeeping and Accounting”.

Demerits of Double Entry System (BBA Study Material)

The main demerit of this system is that it is difficult to apply the rule of debit and credit. Many transactions are such in which out of the two aspects of a transaction in one aspect, one rule applies which in other aspect other rule applies. Thus, it is not only difficult but teasing also to apply two different rules in the same transaction, if the transaction contains such two aspects which are governed by different rules, a minor mistake in it makes the accountancy record defective. In order to have command over the rules of double entry, proper familiarity to the subject, practical knowledge and training is necessary.

Full BBA Notes All Semester 

Montey Parjapati



Google Plus

BBA 1st Semester All Subject Latest Syllabus


Leave a Reply

Your email address will not be published. Required fields are marked *