This should not be confused with in freight, or freight paid on goods received, as such charges add to the cost of the goods and should be charged to the account representing that particular class of goods.
61. Heat and Light—This account is debited with all sums paid for fuel, heating bills, lighting bills, and lighting supplies.
62. Labor—A nominal account which is debited with all sums paid as wages to mechanics or laborers employed by the business.
63. Salaries—A nominal account which is debited with all salaries paid to managers, salesmen, clerks, and others employed in the administration of the business.
RULES FOR JOURNALIZING
64. Journalizing is one of the most important operations in bookkeeping, since journalizing a transaction involves the selection of the proper accounts to be debited and credited completing the double entry. With the use of separate sales and purchase records, the journal itself is used principally for those entries involving a transfer of values from one account to another. These are frequently referred to as cross entries. The number of possible entries of this class is practically unlimited, and they require careful study on the part of the bookkeeper.
Rules for journalizing are frequently referred to in bookkeeping textbooks; but, since the custom of journalizing every transaction is now obsolete, the term is no longer sufficiently descriptive. A better term to use would be rules for debit and credit, for it is the rules of debit and credit that must be followed when a journal entry is to be made.
65. Three-Column Journal. A three-column journal suitable for a small business is shown above. The third column is used for sales only, while the first two columns are used for regular journal entries. The use of the column for sales answers the same purpose as a sales book, and total sales are posted to the credit of sales account at the end of the month.