Journal

In this post, we will learn about Journal.

Journal
Journal
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Definition of Journal

A journal entry is a record of the business transactions in the accounting books of a business. A properly documented journal entry consists of the correct date, amounts to be debited and credited, description of the transaction and a unique reference number.

The process of recording transactions in the journal is called Journalizing. The transactions are recorded in the journal in the manner of their occurrence along with a suitable explanation, called ‘Narration‘ which supports the entry.

Features of Journal

  • Contains daily transactions in Chronological order.
  • Records both the debit as well as credit aspects of transaction by using double – entry system.
  • Shows the complete detail of a transaction in one entry.
  • Recording a transaction in journal is called Journalising and the form in which the transaction is recorded is known as Journal entry.

Advantages of Journal

  • It reduces the possibility of errors.
  • It provides an explanation of entry by way of narration.
  • It helps in recording the transaction in chronological order.

Limitations of Journal

  • Daily cash balance cannot be known.
  • If all the transactions are recorded in a Journal, it will become voluminous.

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FAQs on Journal

What are the features of the journal?

The features of the journal are given below:

1. Contains daily transactions in Chronological order.
2. Records both the debit as well as credit aspects of transaction by using double – entry system.
3. Shows the complete detail of a transaction in one entry.
4. Recording a transaction in journal is called Journalising and the form in which the transaction is recorded is known as Journal entry.

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Last updated: August 14, 2023 Updated on 11:18 AM