Unit-5 Journal

This unit explains the method of applying the rules of debit and credit to business transactions and how exactly the entries are made.

Explain the steps to be followed in journalizing.

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Learning Pundits Content Team

Written on Apr 17, 2019 5:45:59 PM

A short explanation of each transaction is written under each entry which is called narration. The subject matter of the transaction can be ascertained through narration. Besides this, if there be any mistake in determining debit or credit aspect of a transaction, it can be easily detected from narration. "A journal entry is not complete without narration".

For e.g. Purchase of Furniture from Tendulkar for Rs 25,000

 The Journal will look like this

 Furniture A/c Dr 25,000

 To Tendulkar A/c 25,000

(Being the cost of Furniture (Dining Chair, table purchased on dateā€¦)this is the narration and the more we capture here, it helps when we do an audit on a later date.

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