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Advantages of Journal

>> September 10, 2009

Journal is original book of entries in which we record first time all business transaction thoroughly. It advantages are given below :-

  1. Journal provides records of all business transactions in one place on the time and date basis.
  2. All transactions are recorded on the basis of receipts or bill, so we can check authenticity of each journal entries with their bills.
  3. There is minimum chance to avoid any particular transaction because in journal transactions are recorded date basis.
  4. Accountant writes every journal entry’s narration bellow of that journal entry, so other auditor can know what the reason of that journal entry is.
  5. In journal, every transaction is recorded after deep analysis of two accounts on the basis of double entry system, so there is minimum chance of mistake in journal.
  6. Journal is the basis of posting in ledger accounts. With making of journal, accountant can not make ledger accounts.
  7. If there is mistake in ledger, we can rectify it with the help of journal or rectify journal entry in journal.
  8. All opening journal entries , closing journal entries and all other transactions which is not recorded in any other subsidiary books , will be recorded in journal .
  9. Journal is also needed in every type of accounting software . These accounting software can make auto system of posting journal entries by their automatic processing , but accountant must feed journal entries in journal and other specific vouchers of journal .
  10. In journal , there is one column of ledger folio . It is very important for checking reference of each account's posting with its original journal entry .

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