Question

A brief explanation recorded in every entry in general is commonly known as ____________.

• A. narration
• B. explanation
• C. summary
• D. other information

Answer 1

The correct option is A narration

After passing an accounting entry, a brief about the transaction is mentioned just below the entry. This brief is known as "Narration".

For example, Good purchased from Ram on credit for Rs.10000

Accounting entry with narration is as under:

Purchases A/c Dr.

To Ram

(Being goods purchased from Ram through Bill No.45 dated 23.06.2018).