Tag Archives: Journal

Bill of Exchange Important Question 6 for I.Com Part 1

Bill of Exchange Important Question 6 for I.Com Part 1 Karim sold goods to Bashir for Rs. 5,000 and drew a bill upon him for three months for the amount. Bashir accepted and returned it to Karim, who discounted the bill with his banker at 6% per annum. On the due date bill was honored. Solution KARIM’S JOURNAL Bashir account                                   …

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Why journal is called the book of original entry

Why journal is called the book of original entry The word journal has been derived from the French word “Jour” Jour means day. So, journal means daily. Transactions are recorded daily in journal and hence it has named so. As soon as a transaction takes place its debit and credit aspects are analyze and first of all recorded chronologically (in …

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Define journal

Define journal The function of the journal is to provide an original entry for those types of transactions which do not readily fit into the books of original entry. Source: http://www.e-conomic.co.uk/accountingsystem/glossary/journal Or A book of original entry that requires that both the account being debited and the account being credited be listed along with the respective amounts. Because of accounting …

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Define three column cash book

Define three column cash book Three Column Cash Book: A journal which deals with the day to day cash and bank transactions of a business. The side of a transaction which relates directly to the cash or bank account is usually balanced within the journal and used as a part of the nominal ledger when compiling a balance sheet (i.e. …

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Define posting

Define posting Posting is the process of copying either summary-level or detailed entries in an accounting journal into the general ledger. Posting is needed in order to have a complete record of all accounting transactions in the general ledger, which is the source document used to create financial statements. Posting may be done at any time, in batches, or at …

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