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Recording Transactions – Explanation, Journal and Ledger Entries, Solved Example
Ans: The double-entry bookkeeping system is the standard practice of accounting all around the world. In the double-entry system, every account is T-shaped, these two sides represent the debit and the credit side. The debit is the left-hand side and credit becomes the right-hand side of the T-shaped account. The most important rule for a double-entry bookkeeping system is that the total amount on the left-hand side of an account should be equal to the amount on the right-hand side. In other words, the debt amount should be equal to the credit amount. If this isn’t the case, then the accounts will not tally and will indicate an error in calculation or an error in the recording of transactions.
Answered: The process of initially recording a… | bartleby – Solution for The process of initially recording a business transaction is called Group of answer choices journalizing posting balancing closingThe process of recording business transactions in a journal is called journalizing . Keeping a journal can be compared to keeping a diary in which all important events are written. A journal is the only place where complete details of a transaction, including both the debit and credit parts, are recorded. The journal is sometimes called theRecording Of Transaction – I Recording of transaction- I is a process of accounting transactions of the business in several books of accounts like cash book, journal book, a ledger account, profit & loss account, etc. These entries are a source of documents which act as evidence for all the transactions taking place in the company.
PDF CHAPTER 6 Recording Transactions – The process of recording a transaction in the journal is called journalizing from ACCOUNTING 201 at University of Nebraska, LincolnThe act of recording a transaction in the ledger is called posting. The general ledger is known as a principle book. The General Journal. The general journal Is the book of original entry where accountants and bookkeepers keep a record of business transactions, in order, according to the date the transactions occur, or in chronological order.The act of writing the Journal is called RECORDING or JOURNALISING. Journalising (or Recording) is writing down the information relating to an accounting transaction that is relevant in accounting into the accounting records (generally in a specific format) based on the principles of debit and credit.
Class 11 Accountancy Chapter 3 – Recording Of Transaction – I – A journal may be defined as the book of original or prime entry containing a chronological record of the transactions from which posting is done to the ledger. The transactions are recorded first in the journal in the order in which they occur. The process of recording the transactions in a journal is called as journalizing.Since transactions are recorded on the day co-occurrence in the journal, it is called a daily record book. Chronological order: Day to day transactions is recorded in a journal in a chronological order of dates. For this reason, the journal is also called a chronological book of accounts.A business transaction is first recorded in a journal, also called a Book of Original Entry. Your journal keeps a record of all your business transactions, tracking them in chronological order, as they happen. Adding new journal entries is called journalizing. The process of journalizing starts whenever a business transaction occurs.