The advantages of using a journal in the recording process is it discloses in one place the complete effects of a transaction, it provides a chronological record of transactions, & it helps to prevent or locate errors because the debit and credit amounts for each entry can be easily compared.
What do you mean by a journal?
Business diary in which all financial data (taken usually from a journal voucher) pertaining to the day to day business transactions of a firm is recorded using double-entry bookkeeping system. Journals are also called ‘books of first entry’ or ‘books of original entry.’ See also journalizing.
What is the difference between a general journal and a general ledger?
Accounts (such as Cash, Accounts Receivable, Equipment, Accumulated Depreciation, Accounts Payable, Sales, Telephone Expense, etc.) are contained in the general ledger. The general journal is a place to first record an entry before it gets posted to the appropriate accounts.
What are the basics of accounting?
Introduction to Accounting Basics. Some of the basic accounting terms that you will learn include revenues, expenses, assets, liabilities, income statement, balance sheet, and statement of cash flows. You will become familiar with accounting debits and credits as we show you how to record transactions.