ABSTRACT
The paper on which students make journal entries is nothing more than some ‘scrap paper’ indicating which figures need to be recorded on ledger accounts: debit or credit. In the past, journal entries were an important control tool. A journal entry is made for each financial fact. In most exercises students are required only to make journal entries, assuming that the student, as well as knowing how the journal entry is made, is also familiar with how it is processed in the ledger accounts. This chapter familiarises students with the preparation of journal entries, listing out some questions and answers. Examples are provided to explain how accounting rules are applied when making journal entries. The chapter also includes multiple exercises that help students try themselves and prepare journal entries for a set of financial scenarios.
