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A journal is a document which contains the daily records of evens or business transactions.  It used in;

a. The opening of new books of accounts

b. The correction of errors made in the book of accounts, and

c. The credit purchase or credit sales of business property

There are three (3) types of journal

i. General journal

ii. Sales journal

iii. Purchase journal

(i)       General Journal: Here, all daily farm business transactions are recorded. Example of a general journal of Ajilaran Farms Limited

s/nDateDescription Dr (N)Cr (N)
114/4/11Cash account capital account being cash introduced as capital into the business 10,000.0010,000.00
2.19/2/13Building account cash account being cash purchase of poultry house 100,000.00100,000.00
3.25/2/11Tractor account cash account being cash purchase of tractors 50,000.0050,000.00
4.29/2/11Chick account cash account being cash purchase of delayed chicks3,000.003,000.00

(ii)       Sales Journal: Here, all credit sales are recorded. Example of sales journal of Ajilaran Farms Limited

DateParticulars FolioCot (N)Total (N)
4/4/13Mr. Biggs Nigeria Plc – 30 crates of egg at N500/crate – 200 lives broilers at N1,000/broiler – 20kg cat fish at N500/kg

15,000.00 200,000.00 10,000.00

12//4/11Bunmi Trading Stores  10 bags of maize at N10,000/bag, 5 bags of beans at N10,000/bag, 2 bags of guinea corn at N5,00/bag – 200 tuber of yam at N2000/tuber

100,000.00 50,000.00 10,000.00 40,000.00

21/4/11Wole Feeds 150 bags of maize at N10,000/bag. Transfer to sales account 


(iii)       Purchase journal: Here, purchase transactions are recorded, as well as the dates of all transactions.

Example of a purchase journal of Ajilaran Farms Limited

DateParticularsFolioCost (N)Total (N)
3/1/11Wole feeds 5 tonnes of layer mash at N40,000/tone 5 bags broilers starter mash N1000 bag 100 bags of growers mash N1000/bag

200,000.00 5,000.00 100,000.00

5/1/11Noble Agro Chemical 400 bags of N. Pok fertilizer N200/bag 5 gallon of herbicides N2,00 gallon of pesticides N1000/galloon 

800,000.00 10,000.00 2,000.00

10/1/11Badejo Agro Stores 40kg maize seed for planting at N100/kg 50kg bean seed for planting at N200/kg 40 bundles of cassava stem for planting at N1000/ bundle. Transfer to purchase account 

4,000.00 10,000.00 40,000.00



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