The Journals || Processing and Recording Business Transactions || Bcis Notes

The Journals

The Journals

A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company’s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit. A journal is a detailed account that records all the financial transactions of a business, to be used for the future reconciling of accounts and the transfer of information to other official accounting records, such as the general ledger.

Advantages of Journal

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


The journal can be classified into two groups as given below:

General Journals

Special Journals

Journal Proper Purchase book
Opening entry Sales book
Closing entry Purchase return and allowance book
Adjustment entries Sales return and allowance book
Rectification entries Accounts receivable book
Sales of assets on credit Accounts payable book
Purchase of assets on Credit Cash/bank book

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