A businessman do a number of activities like sale, purchase ,giving salary to the employees, paying bills, sale and purchase of assests and many other acivities, so a business involves a number of activites on daily basis. Being a human being it is not possible for us to remember all the transactions,so we need to record the entries on daily basis. In a business we need to record the transaction for that purpose we firstly record the transactions in 'Memorandum Book' . On the basis of entries made in 'Mamorandum Book' a voucher is prepared indicating the account to be debited or credited , they are recorded in a book known as Journal.
Journal is also known as Primary book of accounts in which the transactions are recorded in a systematic manner on daily basis. In Journal we record the transations as they occurs. It is basically recording of all the financial transactions of a business on daily basis. A journal contains day to day transactions in a chronological order. It is initial book for recording business transactions.
It is also known as book of original entries. It covers both the debit and credit aspect of transations on the basis of double entry book keeping. The narration is providing which gives the complete detail of the transaction.We record all the transaction in the Primary Book. Each transaction requires a brief explaination of the transaction. This explaination should accurately describe what look place, so that anyone who glance at it for the first time could easily identify what occured. The purpose of Journal is to keep record of a business and its transactions.
It reduce the possibility of error as the amount to be debit and credit is written side by side and two can be compared to see that they are equal.If the entries are passed directly into the ledger the chances of error increase. So ,it is a record which shows the complete details of transaction in one entry. Journalising means recording a transaction in journal and the form in which it is recorded is known as 'Journal Entry'. The format of recording Journal entries involves the following heading:-
Date:- Date of the transaction
Particulars:-In this column the name of accountsare written with narration which gives a brief discription about the transaction.
ledger Folio:- It is basically the number of ledger page in which the account is posted.
Debit Amount:- It is debit amount
Credit Amount :- It is credit amount of the transaction.
So, the Journal is the intital book of recording transactions of business and plays a very important role in maintaing the accounting records of any business.
Journal is also known as Primary book of accounts in which the transactions are recorded in a systematic manner on daily basis. In Journal we record the transations as they occurs. It is basically recording of all the financial transactions of a business on daily basis. A journal contains day to day transactions in a chronological order. It is initial book for recording business transactions.
It is also known as book of original entries. It covers both the debit and credit aspect of transations on the basis of double entry book keeping. The narration is providing which gives the complete detail of the transaction.We record all the transaction in the Primary Book. Each transaction requires a brief explaination of the transaction. This explaination should accurately describe what look place, so that anyone who glance at it for the first time could easily identify what occured. The purpose of Journal is to keep record of a business and its transactions.
It reduce the possibility of error as the amount to be debit and credit is written side by side and two can be compared to see that they are equal.If the entries are passed directly into the ledger the chances of error increase. So ,it is a record which shows the complete details of transaction in one entry. Journalising means recording a transaction in journal and the form in which it is recorded is known as 'Journal Entry'. The format of recording Journal entries involves the following heading:-
Date:- Date of the transaction
Particulars:-In this column the name of accountsare written with narration which gives a brief discription about the transaction.
ledger Folio:- It is basically the number of ledger page in which the account is posted.
Debit Amount:- It is debit amount
Credit Amount :- It is credit amount of the transaction.
So, the Journal is the intital book of recording transactions of business and plays a very important role in maintaing the accounting records of any business.
No comments:
Post a Comment