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JOURNAL

       DEFINE JOURNAL
       The book of account in which business transactions are originally recorded in chronological order are called journal
                                                     or
       Journal has been derived from the French words “Jour” which means day.
       “Journal is the first book of accounting in which we record business transaction chronologically.”

       DEFINE ENTRY.
       To enter the transactions in journal is called entry.

       DEFINE JOURNALIZING.
       The act of recording transactions in journal is called journalizing.

       DEFINE NARRATION.
       A short explanation of each transaction is written below each entry is called narration.

       DEFINE SIMPLE ENTRY.
       An entry in which one account is debited and one account is credited is called simple entry.

       DEFINE COMPOUND ENTRY.
       An entry in which more than one account is debited or more than one account is credited is called compound entry.

       WHY JOURNAL IS CALLED “DAY BOOK”?
       Journal is called “day book” because all transactions are recorded on daily basis

       WHY JOURNAL IS CALLED BOOK OF ORIGNAL ENTRY / PRIME ENTRY / BASIC ENTRY?
       Journal is called book of original entry because transaction first recorded in journal




PUNJAB COLLEGE OF COMMERCE                                             PROF. HAFIZ MUHAMMAD NAWAZ                       PAGE 1

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03 journal

  • 1. JOURNAL DEFINE JOURNAL The book of account in which business transactions are originally recorded in chronological order are called journal or Journal has been derived from the French words “Jour” which means day. “Journal is the first book of accounting in which we record business transaction chronologically.” DEFINE ENTRY. To enter the transactions in journal is called entry. DEFINE JOURNALIZING. The act of recording transactions in journal is called journalizing. DEFINE NARRATION. A short explanation of each transaction is written below each entry is called narration. DEFINE SIMPLE ENTRY. An entry in which one account is debited and one account is credited is called simple entry. DEFINE COMPOUND ENTRY. An entry in which more than one account is debited or more than one account is credited is called compound entry. WHY JOURNAL IS CALLED “DAY BOOK”? Journal is called “day book” because all transactions are recorded on daily basis WHY JOURNAL IS CALLED BOOK OF ORIGNAL ENTRY / PRIME ENTRY / BASIC ENTRY? Journal is called book of original entry because transaction first recorded in journal PUNJAB COLLEGE OF COMMERCE PROF. HAFIZ MUHAMMAD NAWAZ PAGE 1