Type of Subsidiary Book – General Journals

Some of the advantages in using Journals are as follows:

  1. 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.
  2. journals being book of Prime Entry, journal entries reduce the risk of omitting to record any transaction
  3. 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.

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