Journal- Introduction

According to double entry system of bookkeeping , transactions are recorded in the books of accounts in two stages:
First stage -
Journal
Second stage -
Ledger
The flow of accounting information from the time a transaction takes place to its recording in the ledger may be illustrated as follows:
1. Business Transaction
2.Business Document Prepared
3.Entry Recorded in Journal
4.Entry Posted to Ledger.
The initial record of each transaction is evidenced by a business document such as invoice, cash, voucher etc. Transactions are first recorded in journal and there after posted to two or three concerned accounts in the ledger.
Definition and Explanation of Journal :

The word journal has been derived from the French word "Jour" Jour means day. So, journal means daily. Transactions are recorded daily in journal and hence it has named so. As soon as a transaction takes place its debit and credit aspects are analyzed and first of all recorded chronologically (in the orderof their occurrence) in a book together with its short description. This book is known as journal. Thus we see that the most important function of journal is to show the relationship between the two accounts connected with a transaction. This facilitates writing of ledger. Since transactions are first of all recorded in journal, so it is called book of original entry or prime entry or primary entry or preliminary entry, or first entry.
Entry:
Recording a transaction in the appropriate place of the concerned book of account is called entry. Entry may be of the following two types:
Journal Entry:
Recording a transaction in a journal is called journal entry or journalizing .
Ledger Entry:
Recording a transaction from journal to the concerned account in the ledger is called ledger entry.
It is also known as ledger posting .
Narration:
A short explanation of eachtransaction is written under each entry which is called narration. The subject matter of the transaction can be ascertained through narration. Besides this, if there be any mistake in determining debit or credit aspect of a transaction, it can be easily detected from narration.
"A journal entry is not complete without narration".
Characteristics:

Journal has the following features:
1.
Journal is the first successful step of the double entry system. A transaction is recorded first of all in the journal. So, journal is called the book of original entry .
2.
A transaction is recorded on the same day it takes place. So, journal is also called a day book .
3.
Transactions are recorded chronologically. So, journal is called chronological book.
4.
For each transaction the names of the two concerned accounts indicating which is debited and which is credited, are clearly written into consecutive lines. This makes ledger - posting easy. That is why journal is called "assistant to ledger" or "subsidiarybook" .
5.
Narration is written beloweach entry.
6.
The amount is written in the last two columns - debit amount in debit column and credit amount in credit column.
Advantages of Journal:

The following are the advantages of journal:
1.
Each transaction is recorded as soon as it takes place. So there is no possibility of any transaction being omitted from the books of account.
2.
Since the transactions arekept recorded in journal chronologically with narration, it can be easily ascertained when and why a transaction has taken place.
3.
For each and every transaction which of the two concerned accounts will be debited and which account credited, are clearly written in journal. So, there is no possibility of committing any mistake in writing the ledger.
4.
Since all the details of transactions are recorded in journal, it is not necessary to repeat them in ledger. As a result ledger is kept tidy and brief.
5.
Journal shows the complete story of a transaction in one entry.
6.
Any mistake in ledger can be easily detected with the help of journal.