RSM100Y1 Lecture Notes - General Ledger, Trial Balance, Cheque
20 Apr 2012
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Document Summary
The journal records all the details of a transaction in one place. (e. g. you have the date, the debit, credit entry, and explanation of each transaction recorded chronologically, that is, in the order that they took place. ) The journal is the place where the details of the transaction are first recorded, so it is called the book of original entry. Journalizing the process of recording each transaction. The entire transaction is located at one place. It reduces errors or mistakes such as writing two debits for the same transaction. A chronological history of the transaction is given. It is easier to determine the volume of the business for an accounting period by looking at the number of entries. It is easy to have an idea of the day"s business role by just glancing at the journal. The year and month are shown on each journal page. The short explanation must includes an invoice or cheque number.
