Accounting Cycle : Journal — Flashcards

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A journal is a book of original entry. It is used to record business transactions first, in chronological order, before they are posted to the ledger. It keeps the debit and credit aspects of each tra…

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It is called a book of original entry because transactions are recorded in it for the first time from vouchers or source documents. These records are made before any posting to the ledger.

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The word journal has been derived from the French word 'jour', which means 'day'. So journal means daily record.

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Carter gave the formal definition of journal. He described it as a book of prime entry in which transactions are copied in order of date from a memorandum or waste book and classified into debits and …

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Books of original entry are the books in which transactions are first recorded from vouchers or source documents. The journal is one such book.

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A voucher or source document is documentary evidence supporting a transaction. Examples include invoice for purchase or sales, cash memo, pay-in-slip, cheque counterfoil, wages sheet, and salary regis…

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Narration is a short explanation written after each journal entry. It explains the transaction and helps identify why a particular account was debited or credited.

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The L.F. column is used to write the ledger page number of the account to which the journal entry has been posted. It works as a cross-reference between journal and ledger.