Methodology of journal of 8 days with help of business transaction
Answers
What Is a Bookkeeping Journal? What Is a Daybook?
In bookkeeping and accounting, a journal is a record of financial transactions, entered as they occur. "Transactions" and their entry into a journal are usually the first steps in the accounting cycle, as Exhibit 1 below shows. The exceptions are situations where entries are first captured in a daybook (or book of original entry) before they transfer to the journal.
The Journal
Historically, journals were always bounds as sewn-page bound notebooks in which bookkeepers hand wrote entries 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
Firms sometimes 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 example journal transactions. Note that journal appears in context with related terms and concepts from the fields of accounting and bookkeeping