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- The purpose of a journal in accounting is to12:
- Record all financial transactions done by a business.
- Provide a detailed chronological record of these transactions.
- Serve as a basis for reconciling accounts.
- Use the double-entry method to record transactions, where each entry identifies the affected account and whether it is a credit or a debit.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Key Takeaways
- A journal is a detailed record of all transactions done by a business.
- The information recorded in a journal is used to reconcile accounts.
www.investopedia.com/terms/j/journal.aspWhat is a Journal in Accounting?
- The journal is a fundamental accounting tool to record financial transactions chronologically.
- 2. The journal entry consists of the date, description of the transaction, and debit and credit amounts.
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