Question

What is journal describe its objective and importance?

Answer 1

Answer:

The journal is an important book under the double-entry system. Journal is the first book of systematic record of the financial transactions of the business. Journal is called the book of original or prime entry, because its financial transactions are first of all recorded in this book as and when they take place. Journal is also called a subsidiary book as it is maintained to help prepare the main book called the ledger. The journal is prepared with the help of memorandum or waste book, which is a rough and temporary record of the financial transactions of the business.

Explanation:

Objectives Of The Journal

The following are the main objectives of the journal

* Journal is prepared to keep a systematic record of financial transactions.

* Journal is prepared to show financial transactions in chronological order.

* Journal is prepared to present necessary information about the financial transactions.

* Journal is prepared to use as a legal evidence of financial transactions.

* Journal is prepared to facilitate the preparation of ledger book.

Answer 2

Answer:

• A journal is a thorough account that documents all of a company's financial activities.
• It is used for account reconciliation in the future and for the transfer of data to other official accounting records, including the general ledger.

Explanation:

• Financial transactions are organised in the journal in chronological order.
• The journal is ready to present the pertinent data regarding the financial transactions.
• The journal is ready to serve as a record of financial transactions for legal purposes.
• A journal is prepared to make the creation of a ledger book easier.
• Every business transaction must be carefully and precisely recorded, either physically or digitally, in a journal entry.
• The journal entry will also specify which accounts a transaction impacts if that information is known.
• It consists of the cash book, the buy day book, the sales day book, the bills receivable book, the bills payable book, the return inward book, the return outward book, and the journal proper.
• The actual journal is where infrequent transactions like opening, closure, and rectification entries are entered.

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