>> September 10, 2009
Journal is original book of entries in which we record first time all business transaction thoroughly. It advantages are given below :-
- Journal provides records of all business transactions in one place on the time and date basis.
- All transactions are recorded on the basis of receipts or bill, so we can check authenticity of each journal entries with their bills.
- There is minimum chance to avoid any particular transaction because in journal transactions are recorded date basis.
- Accountant writes every journal entry’s narration bellow of that journal entry, so other auditor can know what the reason of that journal entry is.
- In journal, every transaction is recorded after deep analysis of two accounts on the basis of double entry system, so there is minimum chance of mistake in journal.
- Journal is the basis of posting in ledger accounts. With making of journal, accountant can not make ledger accounts.
- If there is mistake in ledger, we can rectify it with the help of journal or rectify journal entry in journal.
- All opening journal entries , closing journal entries and all other transactions which is not recorded in any other subsidiary books , will be recorded in journal .
- Journal is also needed in every type of accounting software . These accounting software can make auto system of posting journal entries by their automatic processing , but accountant must feed journal entries in journal and other specific vouchers of journal .
- In journal , there is one column of ledger folio . It is very important for checking reference of each account's posting with its original journal entry .
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