Introduction :
Journal maybe describe as a book in which the transactions are recorded in the order of occurrence i.e in chronological order it is called the book of prime entry or first entry because all business transactions are entered first in this book the process of writing a transaction in journal is known as journazlizing and the transaction written in journal is known as journal entry.
Journal record is makes whenever any transaction occur in business it is firstly recorded in journal book.
Definition : "The journal original used in book of prime entry in which transactions are recorded in order of date from memorandum or best book".
CHARACTERISTICS OF JOURNAL -
1. It is a book of original entry because transaction is recorded at first stage in this book.
2. It is the first step in the recording process of double entry system of book keeping.
3. It is also known as the book or diary because transactions are recorded in it on day to day basis age and when they take place.
4. It is chronological record of all transactions talking place according to the order of occurrence.
5. Every entry in journal is accompanied with narration which describe the briefly the true nature and context of the transaction.
6. Amount of the transaction is recorded in both debit and credit column side by side it helps in maintaining arithmetical accuracy of the books.
7. Journal and ledger are interlinked because next step after journal is the ledger.
EXPLANATION OF THE FORMAT OF JOURNAL -
Journal has five columns these columns are of date , particulars, ledger folio, David amount and lost is credit amount (in rupees) detail of all columns are given below :
1. Date : in this colony first of all year is written on the top than the month and date of transaction there is no need to repeat the year and month for rest of the entries until and unless new month or next page is started all the transactions must be recorded strictly according to their occurrence i.e date wise.
2. Particulars : this column content three main things i.e.
a) the name of the account to be debited is written on the first line and placed on the extreme left i.e just close to the date column along with the abbreviation 'Dr'.
b) the name of the account to be credited is written in the next line procedure by the word to about one centimetre away from the date column.
c) Narration is given below the account credited it is the brief explanation of the transaction the narration is written within the brackets it starts with word bring or for giving the reason why the entry has passed.
3. Ledger folio (L.F) : journal is the initial and original book of entries all the transactions are firstly recorded in journal and then posted to ledger folio column ledger page number is written where the particular entry has been posted it gives convenient cross reference of the various accounts posted in ledger.
4. Debit and credit amount : every transaction has got debit expect and its corresponding credit aspect hot sim amount the David and credit amounts are recorded in these columns.
ADVANTAGES OF JOURNAL :
1) date voice record all the transaction can be obtained all transactions are recorded as the of cure so they are is less chance of errors.
2) it provides the explanation of all transaction in form of narration.
3) errors can easily with detected in journal book if total of David amount is not equal to credit amount it means there is some error which can be easily examined.
4) the closing balances of last year related to assets and liabilities can we brought forward to the next year by passing opening journal entry.
LIMITATIONS OF JOURNAL :
1. It does not provide information on prompt basis if the business has too many transactions it will take long time to give information quickly.
2. It does not facilitate the internal check system since journal can be handled only by one person.
3. It is a time consuming process.
4. Journal becomes bulky and lengthy.