BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Detailed explanation-1: -A ledger is known as the book of final entry or secondary entry whereas, a Journal is known as the book of original entry because all the transactions of a business are first of all recorded in the Journal from the source document and from the Journal, these entries are posted to the Ledger accounts.
Detailed explanation-2: -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-3: -Answer and Explanation: A Journal is often called a book of original entry and contains a chronological record of the transactions of a business.
Detailed explanation-4: -No, Journal is not a book of secondary entry since it is the book of original entry or primary entry.
Detailed explanation-5: -Journal is a book of accounts in which all day to day business transactions are recorded in a chronological order. No worries!