Define Journal. Also write down the list of “sub-division of Journal”

The word “Journal” has been derived from French word “jour” which means day. So Journal means daily.

The book in which transactions are first of all recorded chronologically together with its short description is called journal. Journal is also called the Book of Original Entry. It is the first stage of accounting cycle.

Different names of Journal	Ø  Primary book
Ø  Journal	Ø  Chronological book
Ø  Book of original entry	Ø  Preliminary book
Ø  Book of first entry	Ø  Preliminary book
Ø  Book of prime entry	Ø  Day book

Format of Journal

What is meant by Journalizing?

Recording a transaction in a journal is called journalizing.

What is Narration?

Short explanation of a transaction written below each entry in the journal is called narration. e.g.

Transaction:                       Business started with cash $50000

Journal entry:                    Dr            Cr

Cash A/c                          50000

             To capital A/c                     50000

Narration:     (Capital introduced)