Journal Entry Format

What is Journal Entry Format?

Journal Entry format is the standard format used in bookkeeping to keep a record of all the business transactions of the company and is mainly based double-entry bookkeeping system of the accounting and ensures that the debit side and credit side are always equal. The standard format contains 5 columns – 1) Transaction Date 2) Particulars of Business Transaction 3) Folio Number 4) Debit Entry and 5) Credit Entry.

Let us discuss each of the columns in detail –

Standard Format of Journal Entry in Accounting

The basic format of a Journal Entry in accounting is shown as below:


DateParticulars of Business TransactionFolioDebitCredit
XXDebut A/C $0.00 
 Credit A/C  $0.00
 (Brief Narration of the Transaction)   

Column 1: Transaction Date

The first column in the Journal book consists of the transaction date. The transaction date refers to the actual date on which transaction has incurred and not the date of reporting the transaction.

Column 2: Journal Entry

The second column is where we record the business transaction by passing a Journal Entry. Journal entries refer to the systematic recording of business events and transactions that took place on a given date by applying fundamental rules of book-keeping. At the bottom of Journal Entry, we post a brief narration describing the transaction.

For example, suppose on Oct 15, 2019, A Ltd bought furniture worth US $ 1,000/- for business purposes. In this case, we will debit the Furniture Account (Debit what comes in) and credit the Bank Account (Credit what goes out) with US $ 1,000/-

The journal entry format in excel for this transaction will be as follows:

Journal Entry Format Example 2

Column 3: Folio

The third column is referred to as folio number, which indicates the reference number used to identify the particular entry in respective ledger accountsLedger AccountsLedger in Accounting, also called the Second Book of Entry, is a book that summarizes all the journal entries in the form of debits & credits to use for future reference & create financial statements. read more. This reference number could be numeric or alphanumeric as well.

Column 4: Debit Amount

The fourth column shows the amount by which the respective account is got debit in the transaction.

For Instance, On Feb 07, 2019, ABC Inc. paid office rent of US $ 250.00 and Building insurance of US $ 400.00.

Now, since office rent and building insurance is an expense for ABC Inc., we will debit both the accounts (Debit all expenses and losses), i.e., Rent account by the US $ 250.00 & Insurance account by the US $ 400.00 and will credit the bank account by the US $ 650.00(Credit what goes out) as:

The format in excel for this transaction will be as follows:

Journal Entry Format Example 3

Now, with the help of the fourth column, we can clearly distinguish which account is affected by how much amount of money.

Column 5: Credit Amount

Just like column 4, which shows the amount by which account is debited, column 5 represents the amount by which the respective account is get credited.

Continuing the above example, the payment of rent and Insurance expensesInsurance ExpensesInsurance Expense, also called Insurance Premium, is the amount a Company pays to obtain an insurance contract for covering their risk from any unexpected catastrophe. You can calculate it as a fixed percentage of the sum insured & it is paid at a daily pre-specified period. read more shows an outflow of money from the business. Thus we credited the bank account with a total of US $ 650.00


Let us say on Oct 15, 2019, ABC Inc. sold 200 units @ the US $ 10/unit to Mr. John on credit.

To record the transaction, we will enter the transaction date, which is Oct 15, 2019, in the first column.

In the second column, we will pass the accounting journal entry of the transaction, i.e., we will credit the Sales account (credit all income and gains), and as Mr. John has received the goods on credit and going to make the payment in future, he is the debtorDebtorA debtor is a person or entity that owes money to the other party in a transaction. The receiver is referred to as the creditor, and the payment terms vary for each transaction based on the terms and conditions agreed upon by the more of ABC Inc. By the rule of a personal account, we will debit his account by the amount of sale value (Debit the receiver).

The journal entry format in excel for this transaction will be as follows:

Journal Entry Format Example 4

Essential Points to Note About Journal Entry Format

This has been a guide to Journal Entry Format. Here we discuss each element of journal entry format in accounting with detailed explanations & examples. You can learn more about accounting from following articles –

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