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Question

Give the advantages of a journal.
 


Solution

The advantages of a journal are:
(i) A possibility of omission of a transaction is reduced, as transactions are entered in the journal, as and when they take place.
(ii) It becomes easy to locate a particular transaction, they are recorded in chronological order.
(iii) Journal facilitates posting into the ledger by analysing each transaction into debit and credit aspects.
(iv) It helps in cross-checking of the ledger, in case a trial balance does not agree.
(v) From a legal point of view, a journal is more reliable evidence of business transactions than ledger.
 

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