The general ledger is the foremost essential of financial reporting. Posting journal entries can be considered as summarizing, hence, the general ledger is simply a summary of all the journal entries. What is the use of journal entries?Īs soon as the business transactions are recorded into the accounting journals, they are also posted into the journal ledger. As a result, there is always a debit and a credit entry. That means, for every recorded entry (transaction) two different accounts are affected. The most important point to note about journal entries in accounting is that they follow the double-accounting method. These transactions get recorded in the general journal. Journal entries can also be considered as records of financial transactions that flow in and out of a business. In order to pass a journal entry, the details of a transaction are to be entered into the company’s books. Journal entries are the way to record different financial transactions. Get UPSC EPFO Preparation Tips by Testbook experts here! What is a journal entry? It is a very useful and important book based on the principle of the double entry system of book-keeping.

The financial activities are primarily recorded into a journal in chronological order, known as “Book of Original Entry”.Ī journal can be defined as a book that records the daily transactions. These books are:Ī journal is nothing but a book used for recording day-to-day financial transactions of a business organization. Generally, two types of books of accounts are used by organizations to record their business transactions. The books used by an organization for the purpose of recording financial transactions are known as books of accounts. Meaning & Concept of Journal EntriesĮvery business organization is required to record their financial transactions using different types of books. Let’s begin with knowing the meaning of journal entries. For that, the following Journal Entries study notes have been prepared so that accounting aspirants find it much easier and quicker to understand the topic and prepare for the exams likewise.

Accounting aspirants must be thorough with all the aspects related to journal entries.

Recording transactions in a journal