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    JOURNAL: The Primary Book: Meaning: A Journal Is The Book Where Transactions of A Business Are

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    Lipika haldar
    The journal is the primary book of accounting where all business transactions are recorded in chronological order. It has advantages such as providing a complete record of transactions, ensuring authenticity through source documents, minimizing omitted transactions, and facilitating error correction in other books. However, journals are not suitable for high transaction volumes and require accounting expertise.

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    JOURNAL: The Primary Book: Meaning: A Journal Is The Book Where Transactions of A Business Are

    Uploaded by

    Lipika haldar
    28 views1 page
    The journal is the primary book of accounting where all business transactions are recorded in chronological order. It has advantages such as providing a complete record of transactions, ensuring authenticity through source documents, minimizing omitted transactions, and facilitating error correction in other books. However, journals are not suitable for high transaction volumes and require accounting expertise.

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    JOURNAL

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    The journal is the primary book of accounting where all business transactions are recorded in chronological order. It has advantages such as providing a complete record of transactions, ensuring authenticity through source documents, minimizing omitted transactions, and facilitating error correction in other books. However, journals are not suitable for high transaction volumes and require accounting expertise.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    28 views1 page

    JOURNAL: The Primary Book: Meaning: A Journal Is The Book Where Transactions of A Business Are

    Uploaded by

    Lipika haldar
    The journal is the primary book of accounting where all business transactions are recorded in chronological order. It has advantages such as providing a complete record of transactions, ensuring authenticity through source documents, minimizing omitted transactions, and facilitating error correction in other books. However, journals are not suitable for high transaction volumes and require accounting expertise.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    JOURNAL: The Primary Book

    Meaning: A journal is the book where transactions of a business are


    recorded for the first time in a chronological order. It is also known as the
    “Book of original of entries” or the “Book of prime entry” or “Primary
    book”.
    Advantages: It has the following advantages:
     Journal provides complete records of all business transactions in
    one place in a chronological order.
     All transactions are recorded on the basis of receipts or bill, so we
    can check authenticity of each journal entries with their bills.
     There is minimum chances of omitting a particular transaction from
    being recorded in the journal as the transactions of a business are
    recorded in the journal on the basis of their occurrence.
     A narration is given below every journal entry which explains the
    reason of that entry
     In journal, every transaction is recorded after deep analysis of two
    accounts on the basis of double entry system. So there is
    minimum chance of committing mistakes or errors in journal.
     Journal is the basis of making posting in the ledger accounts.
     If there is mistake in ledger, we can rectify it with the help of the
    journal entry passed in journal.
     Journal is also needed in every type of accounting software.
     In journal, there is one column of ledger folio (L.F.). It is very
    important for checking reference of each ledger account's posting
    with its original journal entry.
    Disadvantages:

    1. Journal is not suitable for large volume of transactions.


    2. It requires analytical and technical knowledge for correct
    journal entries.

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