Characteristics of Journal

Characteristics of Journal

1.    Book of Original Entry

Journal is used to record the transaction in first place, therefore journal is also known as book of original entry.

2.    Date & Unique Number

Transaction in journal is recorded with a unique number. This number is representing the transactions. Example of such number may be JV-1 (it means journal voucher number one). The same number is placed on supporting documents (voucher).

3.    Sequential Control

Journal provides a sequential control. It means you can check, whether or not all voucher recorded. It can be done by comparing voucher file with journal. This is very effective control for completeness requirement of financial statement. It is important to remember that completeness will improve the reliability of financial statement.

4.    Record of Every Transaction

Journal has record of every transaction. Therefore journal provides an effective control over the omission of transaction i.e. omitted transaction may be found from the journal, because journal is maintained in a sequence.

5.    Rules of Debit & Credit

Transaction is recorded in the journal on the bases of debit & credit rules. Accounting has defined rules for expense, income, assets, and liabilities.

6.    General Journal & Special Journal

In limited operation organization may use general journal for all transaction. A large operation organization may use special journal in addition to general journal. Special journal are journal for specific transactions. For example sales journal for credit sales and purchase journal of credit purchase.