The journal

4 important questions on The journal

What is a narrative?

A description and explanation of the transaction.

What does the journal consist of?

1. The accounts to be debited
2. The accounts to be credited
3. A description of the transaction

What are examples of the main uses of the journal?

1. The purchase and sale of fixed assets on credit.
2. Writing-off bad debts.
3. The correction of errors in the ledger accounts.
4. Opening entries. (The entries needed to open a new sets of books.)
5. Adjustments to any of the entries in the ledgers.
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(Examination guidance) What is the best plan to give journal entries?

1. On your examination paper write a heading 'Workings'. Then show the double entry accounts under that heading.
2. Now put a heading 'Answer', and show the answer in the form of the journal, as shown in chapter 17.

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