what are the characteristic features of Journal in accounting?

 Let us see, as to, what are the characteristic features of Journal in accounting? Also, see how it would help us to know the scope and uses of this daybook in recording day to day business transactions. 




what are the characteristic features of Journal


what are the features of journal in accounting?


What is Journal in Accounting? Its meaning, definition, nature & scope:

It is the book of primary entry where the business transactions are recorded primarily in this book. The entry made in this book is called a journal entry. All the business transactions are first recorded in this book in chronological order or date wise. It is the book of original entry where the business transactions are recorded in a format of debit and credit. 


        Journalising: All the business transactions are recorded in this book in chronological order. The process of recording transactions in the journal is called journalising. The transactions are recorded in this book as per the double-entry system of accounting which has dual aspect such as debit aspect and credit aspect.


what are the characteristic features of Journal in accounting?


1. The Book of Original entry or Primary entry
It is the book of original entry or primary entry because the transactions are first recorded in this daybook. All the transactions are identified, analysed and recorded in this book. Transactions are recorded as per the Golden rules of the double-entry system. Debit and credit analysis is done to record the transactions. Each transaction is divided into debit and credit to record by giving narration as an explanation to it.


2. Transactions recorded in Chronological order or date wise
All the transactions are recorded in chronological order. It means they are recorded date wise. Hence, all the transactions will be booked in this daybook, following the date pattern. For example, goods sold on 1 January will be recorded first and goods sold on 2 January will be recorded second to it. Goods sold on 3 January will be recorded next to it. In this way, the transactions are recorded in chronological order meaning date wise.

 
3. Narration gives the complete information of the transaction
Narration is a brief explanation of the transaction recorded in this daybook. Narration is used while recording transactions to know the information of that particular transaction. For example, goods sold to John for $1000 on credit. Now, the narration would be as follows - " Being goods sold to John for $1000". This narration helps to identify the nature & type of the transaction recorded. The narration also helps to get the complete information on that particular transaction


4. Complies with the Golden rules of the Double-entry system
Transactions are recorded as per the Golden rules of the double-entry system. Debit and credit analysis is done to record the transactions. Each transaction is divided into debit and credit to record by giving narration as an explanation to it. For example, goods sold to John for $1000 on credit. This transaction would be recorded as per the Golden rules of the double-entry system as follows:
Debit - John   $1000
Credit- Sales  $1000
Here, John was debited for $1000 as he is a debtor and owes money to the business entity for $1000. Sales are being credited as the business made sales for $1000.


5. Different types of Journal
There are different types of day books. Such as General Journal and Subsidiary Journal. This classification is done to avoid repetitive work where the volume of transactions is high. This classification also helps to record transactions in a smooth and efficient manner by avoiding clerical work. This also helps to avoid errors and mistakes while recording a large number of transactions in big organizations.


6. The book has five columns with standard format
This book of primary entry has a standard format with five columns to record the transactions. There are five columns which include the date column, particulars column, Ledger folio column, debit amount column and credit amount column. Finally, the debit amount and credit amount columns must be equal after making totals.


7. It contains different types of Journal entries
There are different types of entries while recording transactions. This is to make the recording easy and smooth. Different types of entries would include compound entry, simple entry, opening entry, closing entry, adjustment entries, transfer entries, rectifying entries. For example, the simple entry has two-fold aspects such as the debit and credit aspect. There is only debit and one credit under simple entry. But there are more than one debit or credit under compound entry. Opening and closing entries are to open or close the transaction recording. Whereas adjustment entries or rectifying entries are made to rectify or adjust the entries. 


8. It is also called the Daybook or Subsidiary book to record day to day transactions
This book is also called the daybook or subsidiary book to record a large number of transactions in big organisations. In case of big business concerns, Journal is classified into different books called subsidiary books to record a large number of transactions. For example, we have different subsidiary book such as purchase book, sales book, purchase return book, sales return book, Cashbook, bills receivable book, bills payable book, Journal Proper. These subsidiary books make the record-keeping work smooth, easy, efficient.


9. Assistance to Ledger
It means, this daybook helps to prepare the Ledger. Ledger is a book of secondary entry to record the transactions in different accounts in T shape or format. After recording transactions in this daybook, these transactions are transferred to Ledger. This process is called Ledger Posting.


10. Journalizing is the process to record transactions in Journal 
As we already discussed, it is the process to record the transactions in this daybook. This is the first process of recording transactions in this daybook. This process helps to record the transactions as per the golden rules of the double-entry system using a standard format. The transactions are recorded using narration to give an explanation to each transaction.



Conclusion

Finally, we can conclude, as to, what are the characteristic features of Journal in accounting? Also, we can conclude its meaning, scope & uses of maintaining this daybook to record daily business transactions in chronological order. This book is the origin to record business transactions. 















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