Q. What is Journal Entry?
Solution:
Journal entries are typically prepared by accountants or bookkeepers based on source documents like invoices, receipts, vouchers, and other relevant records.
In accounting, journal entries are the primary records of financial transactions.
Transactions are recorded in the Journal book from the accounting vouchers. It is recorded on a daily basis.
It is recorded on a chronological basis.
It shows complete information about a transaction.
It is necessary for ledger posting.
Example
Purchase a mobile for cash Rs. 20,000.
Purchase A/c ……….Dr. 20,000
To Cash A/c …………. 20,000
Wages paid to Worker for Rs. 3,000.
Wages A/c……………………………Dr. 3,000
To Cash A/c…………………………. 3,000
Sale furniture for Rs. 8,000.
Cash A/c………………………….Dr. 8,000
To Furniture……………………. 8,000
Related Links
- Who is known as the father of Accountancy?
- What are the differences between the Straight Line and Diminishing Balance methods of charging Depreciation?
- What are compound Journal Entries?
- What is Journal Entry?
- What is Cash Book in Accounting?
- What is a Cash Transaction?
- What is Bookkeeping?
- What are the different methods of calculating Depreciation?
- What is depreciation?
- Who wrote Romeo and Juliet?
- What is the capital of France?
- Why did Lencho write a letter to God?
- What is the squirrel’s opinion about itself?
- What was the only hope of Lencho?
- Where was Lencho’s house located?
- Why did Lencho say the raindrops were like “new coins’?
- What made Lencho angry?
- Name the metal which does not react with oxygen even at high temperature.
- What is the theme of story A Letter to God?
