c) Make a list of 5 transactions that you come across in your day to day activities and enter them in your
journal book.
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The Journal
Historically, journals were always bound as sewn-page notebooks. Bookkeepers hand-wrote each entry in ink, shortly after the firm closed a sale, incurred an expense, earned revenues, or otherwise impacted the firm's accounts.
Today, of course, journals usually exist as part of an accounting system software application. Users, therefore, enter journal transactions either manually, through onscreen forms, or automatically, as with a point-of-sale system. Also, most accounting systems provide user guidance and error-checking to help ensure that entries register correctly as debits or credits in the appropriate accounts. And, the software also automates the second stage of the accounting cycle, posting journal entries to a ledger.
The name "journal," from Old French and Latin origins, suggests a daily activity (jouris French for "day"). Personal diaries and newspapers are sometimes called journals for the same reason. While other accounting records may update less frequently, journals update either continuously or at least daily. As a result, the journal builds a running list of account transactions as they occur. Consequently, should anyone ask which actions happened on a given day, the journal provides the answer.
Daybooks
Some businesses use one or more daybooks (or books of original entry) instead of the journal as the first data entry point for transactions. Entries in daybooks build in chronological order, just as they do in journals. Entries in the firm's various daybooks are frequently transferred to the firm's journal, and then ultimately to the ledger. With daybooks, in other words, the journal becomes the second step in the accounting cycle, while the ledger becomes third.
Journal Explained in Context
Sections below further define, explain and illustrate the term journal and example journal transactions, in context with related terms and concepts from the fields of accounting and bookkeepin, focusing on three themes:
First, defining Journal, Daybook, and Book of Original Entry for bookkeeping and accounting purposes.
Second, different kinds of Journal transactions.
Third, contrasting Information the journal provides with information the ledger provides.
Historically, journals were always bound as sewn-page notebooks. Bookkeepers hand-wrote each entry in ink, shortly after the firm closed a sale, incurred an expense, earned revenues, or otherwise impacted the firm's accounts.
Today, of course, journals usually exist as part of an accounting system software application. Users, therefore, enter journal transactions either manually, through onscreen forms, or automatically, as with a point-of-sale system. Also, most accounting systems provide user guidance and error-checking to help ensure that entries register correctly as debits or credits in the appropriate accounts. And, the software also automates the second stage of the accounting cycle, posting journal entries to a ledger.
The name "journal," from Old French and Latin origins, suggests a daily activity (jouris French for "day"). Personal diaries and newspapers are sometimes called journals for the same reason. While other accounting records may update less frequently, journals update either continuously or at least daily. As a result, the journal builds a running list of account transactions as they occur. Consequently, should anyone ask which actions happened on a given day, the journal provides the answer.
Daybooks
Some businesses use one or more daybooks (or books of original entry) instead of the journal as the first data entry point for transactions. Entries in daybooks build in chronological order, just as they do in journals. Entries in the firm's various daybooks are frequently transferred to the firm's journal, and then ultimately to the ledger. With daybooks, in other words, the journal becomes the second step in the accounting cycle, while the ledger becomes third.
Journal Explained in Context
Sections below further define, explain and illustrate the term journal and example journal transactions, in context with related terms and concepts from the fields of accounting and bookkeepin, focusing on three themes:
First, defining Journal, Daybook, and Book of Original Entry for bookkeeping and accounting purposes.
Second, different kinds of Journal transactions.
Third, contrasting Information the journal provides with information the ledger provides.
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