Journal The Book Of Original Entry

| September 4, 2014 | 0 Comments

What is meant by Journal? discus in detail the main advantages of Journal the Books of Original Entry. What are the Characteristics of Journal?

Accounting Wallpaper

Journal: 1st Phase Of Accounting Cycle:

According to double entry system transactions are recorded in the books of accounts in two stages:

First Stage:          Journal

Second Stage:     Ledger

The flow of accounting information from the time a transaction takes place to its recording in the ledger may be illustrated as follows:

Flow Of Accounitng Picture

 

Note:

The initial record of each transaction is evidenced by a business  document such as invoice, cash voucher etc.

Transaction are firstly recorded in Journal and thereafter posted to the two or three concerned accounts in the ledger.

Definition:

Definition Of Journal

 

Entry:

Recording a transaction in the appropriate place of the concerned book of account is called Entry. Entry may be divided into two:

Journal Entry:

Recording a transaction in a Journal is called Journal Entry or Journalising.

Ledger Entry:

Recording a transaction from Journal to the concerned account in Ledger is called Ledger Entry. It is also known as Ledger Posting.

Narration:

Narration Meaning Picture

 

Characteristics:

Journal has the following features:

The Journal Definiton

Advantages:

The following are the advantages of Journal:

Advantages Of Journal

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