why journal is called 'book of original entry'?
Answers
Explanation:
Journal is the book of original entry in Accounting. Accounting is an art of recording business transactions in the books of account. ... Journal is known as books of original entry because in this book business transactions are initially recorded.
Journal is called the 'book of original entry' because-
1. Accounting is a systematic and organized procedure to document all the financial transactions in a business enterprise. Journaling the transactions is considered the first basic step.
2. All the business transactions are recorded in the journal at first and then posted in the ledger.
3. Journal becomes the primary source of all the data, about the transactions of a particular organization. Journalizing the transactions enables the further steps of accounting.