Which of the following statement is incorrect with respect to a journal entry?

It is prepared to record all transactions in alphabetical order.

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It should always end with a narration explaining the need for it.

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It should be substantiated by appropriate voucher and authority.

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It should always consist of a debit entry matched by a corresponding credit entry.

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Solution

The correct option is A It is prepared to record all transactions in alphabetical order.
Journal is the book of original entry or prime entry. In Journal, business transactions are recorded in order of occurrence i.e. chronological order. There is no other order which is followed other than chronological order to record entries in the Journal.

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Similar questions

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(9) Goods withdrawn by the proprietor from business is debited to the Drawing A/c.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.

The appropriate journal entry to record equipment depreciation expense would consist of a debit to Depreciation Expense and a credit to which of the following accounts?

Q. It is not possible to make a journal entry without a proper ___________ voucher which gives all details of an accounting transaction.

In a trial balance, always the debit column should match with the credit column.

Q. Give one word / term or phrase for each of the following statements.

(1) A book of original entry.
(2) The process of recording transactions in the journal.
(3) Brief explanation of an entry.
(4) The French word from which the word journal is derived.
(5) Entry in which more than one account are to be debited or credited.
(6) Anything taken by proprietor from business for his personal use.
(7) Amount of money payable to broker while buying and selling the shares and securities.
(8) Entry in which one account is debited and another account is credited
(9) The column in journal, which is not filled at the time of Journalising.
(10) An account that is debited when rent is paid to landlord.

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