Question

Answer in once sentence only.

Why is journal called the Book of Prime Entry?

Answer 1

A Journal is called the book of prime entry because all the transactions of a business are first recorded in a Journal, i.e. book of original entry. The transactions are recorded in chronological order and on the basis of the source documents. After recording, these transactions are posted to the ledger accounts, i.e. secondary books. Hence, a Journal is called the book of prime entry.