Narration is not necessary for each and every journal entry.

True

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False

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Solution

The correct option is B False
A short explanation of each transaction is written under each entry which is called narration. The subject matter of the transaction can be ascertained through narration. Besides this, if there is 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".
The statement is false because narration is a brief explanation of a transaction, together with necessary derails that are provided with the journal entry, which helps to understand the account which is to be debited or credited. Thus, a narration is necessary for each and every journal entry, as it provides the details of the journal entry and helps understand the entry.

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Similar questions

Q. State whether the following statements are ‘True or False”.

1) Ledger is known as the book of original entry.
2) Narration is not necessary in ledger.
3) All accounts are closed down at the end of the accounting year.
4) Recording of a transaction in Journal is called posting.
5) Balance of personal account is brought down for the next year.
6) All transactions are recorded directly in ledger.
7) Ledger Folio and index is necessary for ledger.
8) Ledger posting is not necessary for Journal Proper.
9) Ledger Folio is recorded in Journal.
10) Ledger posting is made before passing Journal entry.

Q. Narration is given along with journal entry _____________.

State whether the following statements are true or false:

(1) A journal voucher is must for all transactions recorded in the journal.
(2) Journal is a book of secondary entry.
(3) Narration is not necessary for each and every journal entry.
(4) Every transaction is recorded first in the journal.
(5) Live Stock A/c is a Nominal A/c.
(6) Bank of Maharashtra A/c is a Nominal A/c.
(7) Brokerage paid on sale of goods is debited to brokerage A/c.
(8) If the goods are sold the entry should be recorded in the journal.
(9) Goods withdrawn by the proprietor from business is debited to the Drawing A/c.
(10) Cash discount does not appear in the books of accounts.
(11) If rent is paid to the landlord, landlord’s A/c should be debited.
(12) Book keeping records monetary transactions only.
(13) Drawings made by the proprietor increases his capital.
(14) Premium paid on the life policy of the proprietor should be debited to insurance premium account.

Q. Give the journal entries corresponding to the narration given below:-


S. No.	Particulars		L.F.	Amount Dr. (₹)	Amount Cr. (₹)
(i)		Dr.
		Dr.
	To
	(Goods of the list price of ₹ 5,000 sold at 10% trade discount and 2% cash discount)

(ii)
	(The purchase of Motor Car for ₹ 80,000 and the payment of ₹ 5,000 as repairs charges on it. Entire payment is made by cheque)

(iii)	Chaturvedi’s	Dr.		5,000
	To Cash A/c
	To
	(Chaturvedi’s account settled, cash discount three percent)

(iv)	Bank A/c	Dr.
		Dr.
	To				8,400
	(70 paise per rupee received from the estate of Ashok on his insolvency)

(v)		Dr.		3,000
	To				3,000
	(For goods used by proprietor for personal use)

(vi)		Dr.		2,000
	To				2,000
	(For Rent due to landlord)

Q. Narration is not necessary in ledger.

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