BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Primary book
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Secondary
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third book
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None
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Detailed explanation-1: -A journal is known as primary book. Books of Prime Entry are a more efficient variation on double-entry accounting. In basic double entry, a double entry is made in the general journal, which is posted in the general ledger accounts.
Detailed explanation-2: -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-3: -Journal may be described as the book in which the transactions are recorded in the order of their occurrence i.e. in chronological order. This is called a book of prime entry or the original entry as all business transactions are entered first and in priority in this book.
Detailed explanation-4: -A journal is a book of original or prime entry and not a book of secondary entry. All the business transactions are first recorded in the journal, and then postings are made in the respective ledger accounts, i.e. secondary books. Thus, a journal is a book of original entry.
Detailed explanation-5: -No, Journal is not a book of secondary entry since it is the book of original entry or primary entry.