MEANING,FEATURES, PROCESS ADVANTAGES,LIMITATIONS AND FORMAT OF JOURNAL

—  JOURNAL

—  ACCOUNTING

—  VISIT YU TUBE CHANNEL SHASHI AGGARWAL FOR UNDERSTANDING THE CONCEPT

—  MEANING

—  Journal is a book of original entry in which all the business transaction are recorded systematically.

—  M.J keeler has defined the journal as a chronological record of financial transactions of a business.

—  FEATURES

I.            Book Of original Entry

II.            Known as day book

III.            It is only a subsidiary book , subordinate to the ledger

IV.            Record the transaction according to the order of occurrence

V.            A complete picture of each business transaction

VI.            Maintain arithmetical accuracy of the books of accounts

VII.            Every entry is followed by the Narration

—  ADVANTAGES

I.            Transactions recorded date wise with explanation

II.            Easy to classify

III.            Ensure that double entry rules have been followed

IV.            Reliance evidence

V.            Detection of arithmetical errors

VI.            Provides primary source of data

—  LIMITATIONS

I.            Bulky and voluminous

II.            Daily cash balance not possible

III.            Difficult to locate a transaction

IV.            Time consuming

—  STEPS IN JOURNALISING

I.            Identify the account involved

II.            Nature of the Account

III.            Apply the rule

IV.            Find out which to be debited and which is to be credited

V.            Fill the date column

VI.            The name of the account debited has to be written in first line with abbreviation Dr.

VII.            In the next line the name of account credited preceded by To

VIII.            A brief explanation

IX.            Draw a line to separate one journal entry from the other

—  FORMAT OF JOURNAL

DATE	PARTICULARS	LF	DR AMOUNT IN RS	CREDIT AMOUNT IN RS
1.1.2018	CASH A/C –DR TO CAPITAL ACCOUNT ( BEING BUSINESS STARTED WITH CASH)		1,00,000	1,00,000
2.1.2018	CASH A/C ---DR TO SALE A/C (BEING GOODS SOLD FOR CASH)		2,000	2,000

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