ADVANTAGES OF A JOURNAL
Although it is not necessary to maintain a journal and the transaction can be recorded directly in the ledger accounts, a journal, still is used for the following reasons:
(1)AsTransaction in journal are entered as and when they take place, the possibility of omission of a transaction in the books of accounts is minimized.
(2)As transaction in journal are recorded in chronological order,it is very easy to locate a particular transaction when required.
(3)By analysing each transaction into debit and credit aspects, the journal facilitates the posting into ledger.
(4)Each entry in the journal carries narration which gives a brief explation of the transaction.Hence, posting in the ledger can be made without explation.
(5)Journal facilitates cross checking of lerdger accounts in case a trial balance does not agree.
(6)Since entire transaction is recorded at ion place in the journal, the identity of each transaction is maintained on a permanent basis.
(7)Once the transaction is recorded in journal,posting in the ledger can be made as and when convenient.
Although it is not necessary to maintain a journal and the transaction can be recorded directly in the ledger accounts, a journal, still is used for the following reasons:
(1)AsTransaction in journal are entered as and when they take place, the possibility of omission of a transaction in the books of accounts is minimized.
(2)As transaction in journal are recorded in chronological order,it is very easy to locate a particular transaction when required.
(3)By analysing each transaction into debit and credit aspects, the journal facilitates the posting into ledger.
(4)Each entry in the journal carries narration which gives a brief explation of the transaction.Hence, posting in the ledger can be made without explation.
(5)Journal facilitates cross checking of lerdger accounts in case a trial balance does not agree.
(6)Since entire transaction is recorded at ion place in the journal, the identity of each transaction is maintained on a permanent basis.
(7)Once the transaction is recorded in journal,posting in the ledger can be made as and when convenient.
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