Question

When is it necessary to analyse a transaction in terms of debit and credit?

• A. At the time of journalizing
• B. At the time of posting
• C. In both the cases
• D. In no case

Answer 1

The correct option is A At the time of journalizing

At the time of journalizing, transactions are analysed in terms of debit and credit.

Then it is recorded in the form of entries in journal books.
The golden rules are applied for passing any entry in the journal books

Journal is also known as books of original entry or books of primary entry.