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    6.JOURNAL (Financial Accounting)

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    Asjad Jamshed
    The document discusses key aspects of financial accounting journals. A journal is the book of original entry where all business transactions are recorded chronologically. It includes columns for the date, description of accounts debited and credited, page references to associated ledger accounts, and amounts. Narration provides an explanation of each transaction. The process of recording transactions in a journal is called journalizing, with each recording constituting a journal entry that can be simple with two accounts or compound with three or more.

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    6.JOURNAL (Financial Accounting)

    Uploaded by

    Asjad Jamshed
    95 views1 page
    The document discusses key aspects of financial accounting journals. A journal is the book of original entry where all business transactions are recorded chronologically. It includes columns for the date, description of accounts debited and credited, page references to associated ledger accounts, and amounts. Narration provides an explanation of each transaction. The process of recording transactions in a journal is called journalizing, with each recording constituting a journal entry that can be simple with two accounts or compound with three or more.

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    6.JOURNAL(Financial Accounting)

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    The document discusses key aspects of financial accounting journals. A journal is the book of original entry where all business transactions are recorded chronologically. It includes columns for the date, description of accounts debited and credited, page references to associated ledger accounts, and amounts. Narration provides an explanation of each transaction. The process of recording transactions in a journal is called journalizing, with each recording constituting a journal entry that can be simple with two accounts or compound with three or more.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    95 views1 page

    6.JOURNAL (Financial Accounting)

    Uploaded by

    Asjad Jamshed
    The document discusses key aspects of financial accounting journals. A journal is the book of original entry where all business transactions are recorded chronologically. It includes columns for the date, description of accounts debited and credited, page references to associated ledger accounts, and amounts. Narration provides an explanation of each transaction. The process of recording transactions in a journal is called journalizing, with each recording constituting a journal entry that can be simple with two accounts or compound with three or more.

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    Financial accounting notes

    JOURNAL:-
    A book in which all the transactions of a business are recorded first is called
    “Journal”. The transactions are recorded chronologically, i-e in order of occurrence.
    It is also known as “Book of Original Record”, a book of “Original Entry” or “Day
    Book”, because the day to day transactions are recorded in it. In very large units a
    number of journals are prepared instead of one, e-g cash journal, sales journal etc.

    JOURNAL Page .........


    Date Description L.P Debit Credit

    DATE COLUMN => The date of the transaction is recorded in each entry. The
    date on which a transaction takes place is recorded in this column. Year is shown at
    the top only once, whereas dates are recorded repeatedly.

    THE DESCRIPTION COLUMN => The specific asset, equity (liability), revenue
    or expense involved in the transaction is shown in this column. The account to be
    debited is written above at the extreme left and the account to be credited below it
    at the extreme right or after leaving some space from left.

    THE POST REFERENCE (L.P) COLUMN => All the accounts appearing in
    journal is posted to ledgers. The page/code of the ledger concerned is recorded in
    this column.

    AMOUNT COLUMNS => The amounts involved in the transaction are entered in
    these columns (debit columns and credit columns). In each journal entry the total
    debits should always be equal to the total credits.

    NARRATION => A brief explanation of each transaction is given below it is called


    Narration. It is recorded in the description column.

    JOURNALISING => The process of recording the transactions in Journal is called


    Journalising.

    JOURNAL ENTRY => To Enter, register or record each aspect of a transaction in


    Journal is called a Journal Entry. Journal Entries may be simple or compound.
    Simple Journal Entry is an entry in which only two accounts appear is called a Simple
    Entry, whereas Compound Journal Entry is an entry that includes three or more than
    three accounts.

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