Journal
A type of document for recording transactions in sequential order is called a Journal, in which transactions are recorded by date and amount.
Journalizing
Once a transaction is recorded in Journal, it is called journalizing.
Accounting Equation
Assets=Liabilities + owner Equity all accounting transaction which records base on this equation,
General Journal
General Journal refers to an original entry book. All transaction records in the journal are in order and as per date. The Journal is the place of the business transaction into company accounting system. All the transactions are recorded into in order along with an explanation of each transaction and whether the transaction affects either the transaction is debited or credited and what amount.
How is it Used?
Transactions can record in the form of the accounting equation. Most companies decide to record in a more permanent fashion by recording transactions in a journal. Every business uses the kind of journal as per requirement of its business. The number of transactions and nature of business determine the actual journal for recording transaction
Accuracy
All the information of the transaction with its affect record in one place. So it is easy to verify through comparing the data in the journal with the transaction data itself for the purpose to check its accuracy.
Sequential Record
As transaction occurs, it records by date in order into the journal. As it is recorded in an order so it is easy to search any transaction by date and amount
Double Entry Accounting
Double Entry Accounting means every transaction have two effects, debit and credit and both two effects are important to record which shows the equal balance of the transaction This process replicates the dual outcome of each transaction on the business’s records. Double-entry accounting assures that debits equal credits.
Source Documents
A business report which drives information from the journal entry is called source document. Every transaction has its own source document which is the objective evidence of the transaction. For example, ERP.Gold prepares a receipt for cash payment. The receipt describes information about the cash payment transaction for which check is prepared; the accounting concept tells us that objective evidence is applied when a source document is prepared. A transaction must be journalized when it actually made. The accounting record should be accurate, vouchers, sales invoices, receipts, memorandums all are the example of source documents.
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