Journal

A journal is a columnar book

A journal is a columnar book of accounts where all day-to-day business transactions are recorded in chronological order (date-wise) as they occur. It

A journal has 5 main columns

A journal has 5 main columns: (1) Date - records the transaction date; (2) Particulars - shows affected accounts with 'Dr.' for debit account and 'To'

Journalizing involves four steps

Journalizing involves four steps: (1) Identify the accounts affected by the transaction; (2) Recognize the type of accounts (asset, liability, capital

A simple journal entry affects only

A simple journal entry affects only two accounts - one account is debited and another is credited. Example: Cash A/c Dr. 5,000 / To Sales A/c 5,000 (G

A compound entry affects more than

A compound entry affects more than two accounts. It can be created by: (1) debiting one account and crediting multiple accounts; (2) debiting multiple