What is Journal, Benefits,Purpose, Format of Journal-MBA TOPIC

What is a journal?

All About MBA TOPIC| The every day's transactions written on each day are known as journals. Writing of business event sequences according to date is called journal.

Not long ago, there was no particular way to write a journal, people used to write commercial transactions. (MBA TOPIC)

source- onlineaccountreading.blogspot.com

In 1494 AD, the famous Italian philosopher Lucas Pacioli gave a special way of preparing the rosemary. The method given by them is called the Double Entry System.

What is the benefit of the journal?

·       Receiving details of date-wise transactions - In the journal, the entry of the transactions were dated, so the details of transactions are dated.

·       Convenience of copy - a copy is facilitated in various accounts opened in the account from the journal.

·       Receiving full details of the transaction - in the journal, along with the entry of transactions, the brief description of the transaction is given in the form of interpretation.

·       Less probability of impurities - In the journal both entries of the transaction i.e. debit or credit entries are done simultaneously. This reduces the possibility of impurities.

·       Dispute of quarrels - Journal also helps in resolving trade disputes and differences. (MBA TOPIC)

What is the purpose of Journal?

The following objectives of the journal are:

·       The purpose of the journal is to keep all the transactions accountable and date-wise.

·       In the double accounting system, each transaction has two parties, the journal tells us which account should be debited and which account is credited to Credit.

·       The third objective of the journal is to facilitate lactating in laser or lender.

·       The fourth objective of the journal is to provide information regarding the deal.

·       The fifth objective of the journal is to assist in resolving disputes and differences.

What is the format of Journal?

There are five columns in the journal: -

·       Date - This is the first meal of the daily name. Write the year at the top of this meal, then the date of the deal is written down. When writing the date, write the first month and then the date.

·       Particulars - This is the most important food. The names of affected accounts are written in two lines in this field. In the first line, the name of the account has a debit (Dr.) is written and the second line contains the name of the credit (Cr.) Account.

·       Account page number (Ledger Folio) - The third account of the journal is page number. This food is made small. The title is written briefly, such as - L.F. In this field, the number of litter pages is written on which this account has been accounted for.

·Amount - There are two doses of the zodiac sign. In the first field, the amount of debit account and the amount of the credit account in the second account is written. The amount of debited accounts is written in front of the entry with the debit and the amount of the accounts to be credited in front of the entry with the credit.

We hope you like this article(What is Journal, Benefits, Purpose, Format of Journal) & also help you to know about MBA TOPIC|