Q. What is Journal Entry?
Solution:
Journal entries are typically prepared by accountants or bookkeepers based on source documents like invoices, receipts, vouchers, and other relevant records.
In accounting, journal entries are the primary records of financial transactions.
Transactions are recorded in the Journal book from the accounting vouchers. It is recorded on a daily basis.
It is recorded on a chronological basis.
It shows complete information about a transaction.
It is necessary for ledger posting.
Example
Purchase a mobile for cash Rs. 20,000.
Purchase A/c ……….Dr. 20,000
To Cash A/c …………. 20,000
Wages paid to Worker for Rs. 3,000.
Wages A/c……………………………Dr. 3,000
To Cash A/c…………………………. 3,000
Sale furniture for Rs. 8,000.
Cash A/c………………………….Dr. 8,000
To Furniture……………………. 8,000
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