7 Why is a Journal called book of original entry A Journal is where

7 why is a journal called book of original entry a

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7. Why is a Journal called “book of original entry”? A Journal is where transactions are recorded for the first time, hence called the book of original entry. 8. Why is Ledger called the “book of final entry”? A Ledger is called the book of final entry since transactions that were recorded in the journal are transferred here for final recording.
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9. What is the significance of the “folio column” in a journal? The folio column is used to mention the references in a ledger to which the journal entry has been transferred thus making it easier to comprehend if all entries have been posted in the relevant accounts. 10. What are the two (2) kinds of journal? The two kinds of journal are General Journal and Special Journal. The General Journal, is where all business transactions are being recorded with exception of those entered in the Special Journal. The Special Journals are books which have specific use where similar transactions are being recorded and organized. 11. What are the two (2) kinds of Ledger? The two kinds of ledger are General Ledger and Subsidiary Ledger. The General Ledger provides a record of each financial transaction that takes place during the life of a business. Meanwhile Subsidiary Ledger contains the details to support the General Ledger. 12. What is journalizing?
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