Question

what are the advantages and disadvantages of a journal entry?
please help me​

Answer 1

Answer:

Journal records all business transactions in one place on the time and date basis.

All transactions which are recorded, are supported with a receipt or bill, so we can check the authenticity of each journal entries with their bills.

There is a minimum chance to avoid any particular transaction because in a journal we record every transaction on a date basis.

Accountant writes each journal entry’s narration below that journal entry, so another auditor can know what is the reason of that journal entry.

In a journal, we record each transaction after deep analysis of two accounts on the basis of double entry system, so there is a minimum chance of mistake in the journal.

Journal is the basis of posting transactions in ledger accounts. Without making of the journal, an accountant can not make ledger accounts.

If there is a mistake in ledger accounts, we can easily rectify it with the help of journal or rectify journal entry in the journal.

All opening journal entries, closing journal entries and all other transactions which we cannot record in any other subsidiary books, we record them in the journal proper.

We also need Journal in every accounting software. This accounting software can make an auto system of posting journal entries to the ledger by their automatic processing, but the accountant must feed journal entries in the journal and other specific vouchers of the journal.

There is one column of ledger folio. It is very helpful for checking reference of each account’s posting with its original journal entry.

Answer 2

Answer:

Concept:

A journal is sometimes known as a Book of Prime Entry or an Original Entry Book. Journalization is the practice of recording transactions in a journal. A 'journal entry' is a type of entry made in this book. The journal is a primary-entry book in which every transaction is entered before it is posted to the ledger. It's the account book in which transactions are documented in a chronological (day-by-day) order. In modern times, specialty journals are kept in addition to the primary journal to record various types of transactions. Journalising is the practice of transaction processing in a journal. In most cases, a journal is kept in a columnar format.

Given:

What are the benefits and drawbacks of keeping a journal?

Find:

what are the benefits and drawbacks of a journal entry?

Answer:

Advantages:

1. It keeps track of transactions as they happen. As a result, detailed day-to-day information is available.
2. By documenting and categorizing transactions into debit and credit aspects, the nature of the transaction and its impact on the financial situation of the firm may be established.
3. It entails providing an explanation for the transactions that have been documented.
4. The journal serves as the foundation for ledger posting and the final Trial Balance.

Disadvantages:

1. When a business has a huge number of transactions, the journal becomes bulky and extensive.
2. The journal does not provide timely information.
3. The establishment of an internal check system is difficult since the journal can only be handled by one person.
4. Cash transactions are frequently kept in a separate ledger known as a "cash book." Those transactions aren't kept in the journal.

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