BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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primary entry
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secondary entry
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final entry
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none of the above
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Detailed explanation-1: -Journal is called a book of prime entry because all the business transactions are recorded first in the journal in a chronological order i.e. in the order of their occurrence.
Detailed explanation-2: -What is the book of prime entry? This is where the transactions that are made by a business are recorded for the first time, before they are entered into the separate ledger accounts. These books are separated into: The Sales Journal. This is used when a business has a lot of separate sale transactions.
Detailed explanation-3: -(2) Journal is a book of secondary entry.
Detailed explanation-4: -It acts as the book of original entry or prime entry and also as ledger. It is a subsidiary book because entries are first posted in the cash book and then, from there, it is posted in other ledger accounts.