write Needs and functions of journal. ( in point wise)
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write Needs and functions of journal. ( in point wise)
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Explanation:
Functions of Journal
(i) Analytical Function: While recording a transaction in the journal each transaction is analyzed into the debit aspect and the credit aspect. This helps to find out how each transaction will financially affect the enterprise.
(ii) Recording Function: Accountancy is a business language which helps to keeps the record of the transactions based on the principles. Each such recording entry is supported by a brief narration, which explains, every transaction in simple language. Narration means to narrate – i.e. to explain. It starts with a word – Being.
(iii) Historical Function: Journal book contains a chronological record of the transactions for future references.