Type of Subsidiary Book – General Journals
Some of the advantages in using Journals are as follows:
- transactions which occur infrequently and adjustments necessary at the close of an accounting period require evidence as a basis of recording. Journal vouchers are used to support such transactions and by being signed by responsible officials, they constitute entries for the General Journal. It is therefore easier to detect fraud or errors.
- journals being book of Prime Entry, journal entries reduce the risk of omitting to record any transaction
- the narrations given to all general journal entries explain the nature of the transactions. Each narration provides a record of entries made in the ledgers.
Related Posts
- GCE “O” Level Principles Of Accounts ( Singapore )
- Accounting Fraud Of Satyam,Indian Enron
- Dictionary Of Auditing Terms-Alphabet A
- The Different Types Of Journals Or Books Of Prime or Original Entry Shown In The Accounting Cycle
- What Are The Situations That Can Increases The Chance Of Fraud Occurrence
Comments are closed now.