Concept of Journal Entry-Definition, Features and Importance| Journal Entries

Welcome to our YouTube channel “Everything about Accounting.” If you want to learn accounting easy and simple way, you are in the right place. We all know that journal entry is the first step of recording transactions in the accounting book. Journal entry has immense importance in accounting. So, in this video, we will learn: 1. What is Journal Entry? 2. What are the features of Journal Entry? And 3. Necessity or importance of Journal Entry. What is a Journal entry? There are numerous transactions taking place every day in every business organization. After that, the book on which these transactions are first recorded chronologically by means of a debit and credit analysis with proper explanation is called a journal. Example of Journal: Suppose, Mr. David purchased a table for office in July 2019 with cash $4,000 How the transaction will be recorded in the Journal book is given below Furniture account—————-Debit Cash Account ———————Credit (Since purchased a table for office with cash $4,000) Features of Journal Entry: If we analyze the definition of a journal, we will have the following features of the Journal: 1. Journal is the primary book of account. 2. It is a daily book of accounts. 3. Journal is an associate book of accounts. 4. It records each transaction through a debit-credit analysis. Necessity or Importance of Journal Entry: The importance of the Journal is analyzed below. 1. Journal is a permanent record of accounts. 2. The nature of the transaction is known through Journal. 3. Journal maintains the continuity of the transaction. For more information visit our official website www.everythingaboutaccounting.info ____________________________________________ Content Source: https://everythingaboutaccounting.info/2019/09/journal.html#more-61 ___________________________________________ Follow us on: Facebook: https://web.facebook.com/accountingusers Twitter: https://twitter.com/Everyth50765685 LinkedIn: https://www.linkedin.com/company/everything-about-accounting/ __________________________________________ YouTube Subscribe Link: https://www.youtube.com/channel/UC8HnexbqAZOoz7xs_Kr88GQ __________________________________________ #everythingaboutaccounting #accounting #accountingtutorial #accountingbasics #accountingforbeginners #journalentry