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9 Journal

The journal is the day to day book of business where both the aspects of all business
transactions are recorded in chronological order i.e. date wise. Thus journal is a book
of prime entry and also known as book of original entry because transactions are
recorded at the first occurrence in this book.
Recording of transactions in a journal is termed as journalizing. Journalizing is an act
of recording the debit and credit aspect of a business transaction in journal together
with an explanation of the transaction, known as narration. The record of any
particular transaction in journal is called journal entry. These entries are then posted
from journal into the ledger. Each journal entry shows the account to be debited and
the account to be credited.

According to R.N. Carter– "The Journal or daily record as originally used was a
book of primary entry in which transactions were copied, in order of date, from a
memorandum or waste book. The entries as they were copied, were classified into
debits and credits so as to facilitate this being correctly posted afterwards in the
ledgers."
Thus, journal is the book of prime entry in which financial transactions are recorded
on the basis of rule of double entry book keeping, in a chronological order.

Advantages/Objectives of journal

The main advantages and objectives of journal are as follows:
i. It helps to provide the date wise record of financial transactions.
ii. It ensures that every transaction occurred in business is recorded.
iii. Every entry is supported by narration, that explains the transaction of business.
iv. Journal is not only base, for ledger account but also for other financial records
and documents.
v. Corresponding debit and credit recording of every transaction helps to reduce
the chances of error.
vi. It can be presented as evidence for legal proof.

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