Question

answer fast so I will mark ur answer as a brainiest.Needs and importance of journalising the household transactions for a month

Answer 1

hlo,

Similar to business, recording household related transactions can also be fruitful. Like, it will help you in knowing how much you have spent in a particular month on various expenses such as tuition fees for your children, groceries, entertainment, etc.

Moreover, you will also be able to understand how much money you are able to save every month (or every year). In addition to it, you may cut down your expenses if the amount spent on each item is known to you.

Basically, you will be able to manage your home in a more effective and efficient way if you choose to keep records of your household transactions.

However, we do not actually pass the journal entries for household transactions rather we just maintain records (similar to the single entry system where only personal and cash account is maintained).

In case your query relates to some other context, it is advisable that you explicitly state your concern so that we can help you in the best possible manner.