Write a bout journal

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Journal:- 

       Journal means a day book 📚 or daily record. It is the book where in all the transactions are first recorded in chronological order. It is a book of prime, original or first entry, as all business transactions are first recorded in the journal. Form journal the posting are made in the ledger. journal is only subsidiary book 📚 i.e., a book 📚 which is sub-ordinate to the ledger. Which is the principal Book 📚 of accounts? The journal analyses the various transactions into their debits and credits so that they could be easily posted to the ledger accounts. In order words journal is helpful in the preparation of Accounts in the ledger. The process of recording transactions in journal is termed as 'journalizing'. 


      The journal is rule of as follows:-

                        Journal


    

     Column (1) : Date

              The date on which the transactions took place in entered in this column. The year is written on the top, then the date column is divided in two parts, the first is divided into two parts, the first part is used for writing the month and the second part is used for writing the date.


Column(2): Particulars

      In the first line name of the account to be debited is written. The word 'Dr' (Debit) is written at the end of the first line. In the second line some space is left and the word 'To' is written before the name of the account to be credited. Then the name of the account to be credited is written. A brief explanation, usually beginning with the word . Credited is written. A brief explanation, usually beginning with the word. ' Being ' or ' For ' is written called ' narration '. The ' narration ' explains the reason for debiting and crediting the particular accounts and helps one to understand the nature and purpose of the journal entry at a future date. To separate one entry from another, a line is drawn below every entry to cover particulars column only. The line does not extend to other columns. 


Column (3) : L.F.

      The L.F stands for " Ledger Folio" in this column the page numbers on which the various accounts appear in the Ledger are entered.


Column(4):Debit Amount  

      In this column the amount to be debited against the Debit Account is written.


Column (5): Credit Amount

         In this column the amount to be credited against the credit account is written.


Advantages of journal

* It provides date wise record for all business transactions.


* It provides an explanation of the transactions.


* It shows all the necessary information regarding a transaction.


* It helps to locate and prevent errors.

      


 



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