Published by: Sujan
Published date: 14 Jun 2021
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.
Journal is the original book of entries in which we record the first time all business transactions thoroughly. Its advantages are given below:-
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 |