BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Journal
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Ledger
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Trail Balance
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Final Accounts
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Detailed explanation-1: -Books of original entry are referred to as the books or journal where a business records all the business transactions initially. The information that is contained in the books of original entry are summarised and recorded in the general ledger, which is then used to prepare trial balance and the financial statements.
Detailed explanation-2: -Some of the examples of books of original entry are Cash journals, Purchase Journals, Sales Journals etc. There are two major types of accounting journals, they are: 1. General Journal: A general journal is an accounting journal in which a business transactions are recorded in chronological order.
Detailed explanation-3: -Journal is known as books of original entry because in this book business transactions are initially recorded.
Detailed explanation-4: -What are Books of Original Entry? Books of original entry refers to the accounting journals in which business transactions are initially recorded. The information in these books is then summarized and posted into a general ledger, from which financial statements are produced.