Journal is also called the Book Of Prime Or Original Entry.
The purposes of Journal are as follows:
- Records in one place the complete effects of a transaction
- Provides a chronological record of transaction
- Helps to prevent or locate errors because the debit and credit amounts for each entry could be readily compared
The Standard form and Content of journal entries are as follows:
- Date
- Name of account to be debited and the amount
- Name of the account to be credited and the amount
- Description and explanation of the transaction ( ie narrative)
- Reference number for the source documents giving proof of the transaction
( Journalizing is a term used to mean the entering transaction data in the journal )
Click to respective Journal:
{Click here to go to Content Page on all other articles on Books of Original Entry}