Understanding Bookkeeping

Some of the advantages in using Journals are as follows:

1. transactions which occur infrequently and adjustments necessary at the close of an accounting period require evidence as a basis of recording. Journal vouchers are used to support such transactions and by being signed by responsible officials, they constitute entries for the General Journal. It is therefore easier to detect fraud or errors.
2. journals being book of Prime Entry, journal entries reduce the risk of omitting to record any transaction
3. the narrations given to all general journal entries explain the nature of the transactions. Each narration provides a record of entries made in the ledgers.

Explained below is another special journal or subsidiary book which is called the Sales Journal , the details being explained below:- (more…)

We have Sales Journal, now let’s look at another subsidiary book or special journal called the Purchase Journal:- (more…)

Let’s look at another special journal which is the Cash Payment Journal: (more…)

Let’s look at another Journal which relates to cash which is the Cash Receipt Journal. (more…)

In earlier article of Part1, we learned about the journal and its importance.

This Part 2 show us the technique of journalizing. When we do journalizing, there are normally two scenarios which might involve single entry or compound journal entry

Append below the illustration: (more…)

This article is to explain what is a Journal and its purpose. (more…)