Updated on March 1, 2023
A journal is an account for recording monetary transactions in an organisation which will be later transferred to the general ledger or other company records. These are also used for reconciliation purposes later. It is used for routine entries for business transactions. A Journal entry notes the transaction date, the account head and the transaction amount. It uses the double-entry-bookkeeping entry system. A journal can be a digital or physical record, receipt or document which is maintained in the form of book entry, excel files, spreadsheets, accounting software entry-online or offline.
What are the features of Journal?
Some key features of Journal are:
a) All business transactions are recorded and entered in the journal
b) A transaction will be recorded under all heads or books wherever it will have an accounting impact
c) Journals are used as evidence during audits as audit trail as well
d) Journal entries are critical for double entry bookkeeping of accounting, where such entry affects both debit and credit accounts