The journal is used for the following listed areas.
1. Correcting accounting errors
When errors are made in the books of account, there is need to make correction to reflect the true and fair position of the business entity. The journal is used to effect this correction.
2. Opening new entries
Assuming in a statement of affairs of a business entity is presented and new transactions coming in are to be recorded, the journal will be used to open the entries so that the posting can then be done into the accounts opened.
3 uses of the JournalIn a credit sale or purchase of fixed assets, a journal is used to record that transaction before it can be posted into their respective ledgers.
4. Transfer from one account to other account(s)
The journal is also used to make transfers between accounts.
5. Non-cash drawings
Where non-cash transactions take place, such as drawings in goods, the journal is used to record the transaction before further entries can be made in the respective ledgers.
1. Correcting accounting errors
When errors are made in the books of account, there is need to make correction to reflect the true and fair position of the business entity. The journal is used to effect this correction.
2. Opening new entries
Assuming in a statement of affairs of a business entity is presented and new transactions coming in are to be recorded, the journal will be used to open the entries so that the posting can then be done into the accounts opened.
3 uses of the JournalIn a credit sale or purchase of fixed assets, a journal is used to record that transaction before it can be posted into their respective ledgers.
4. Transfer from one account to other account(s)
The journal is also used to make transfers between accounts.
5. Non-cash drawings
Where non-cash transactions take place, such as drawings in goods, the journal is used to record the transaction before further entries can be made in the respective ledgers.
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