Question

Which of the following is the process of entering business transactions of financial character in the books of original entry in terms of money?

Answer 1

Answer:

Explanation:

Explanation: The credit purchase of goods and Goods worth ` 5,000 taken from the business and given by the proprietor to his friend as gift are transactions which are of financial character and will be recorded in the books of accounts

Answer 2

Journal

A book of original entry is a journal or accounting book in which all transactions are initially recorded. This book is also known as a first or preliminary entry. It is the journal where invoices, vouchers, cash transactions, and other transactions are initially recorded before being transferred to ledger accounts. This means that before any details of a business transaction can be recorded in the book of original entry, they must first be recorded in the book of original entry. All business transactions, including their details and descriptions, are first recorded in the original entry book.

In accounting, a journal is a book of original entries. Accounting is the practice of recording business transactions in ledger books. Recording is the process of recording financial transactions in books of original entry, i.e., journals.

∴ The process of entering business transactions of financial character in the books of original entry in terms of money is known as Journal.

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