A ‘general journal’ is used in addition to the ledger(s) because of the following advantages:

(i)    A journal contains a permanent record of all the business transactions.

(ii)  The journal provides a complete chronological (in order of time of occurrence) history of all business transactions and the task of later tracing of some transactions s facilitated.

(iii)  A Complete information relating to one single business transaction is available in one place with all its aspects.

(iv)  Each transaction is provided with an explanation technically called a narration.

(v)  Use of the journal reduces the possibility of an error when transactions are first recorded in this book.

(vi)  The journal establishes the equality of debits and credits for a transaction and reconciles any problems. If a business purchases a bicycle, it is necessary to decide whether the bicycle represents ordinary goods or machinery. Further any amount paid is debited to bicycle account and credited to cash account.

(vii) The use of journal avoids omission or duplication or transactions. Without the journal, the accountant would be forced to go to the individual accounts to enter debit and credits. Therefore, it is possible for accountant to miss part of a transaction, duplicate all or part of a transaction, duplicate all or part of a transaction or incorrectly record debits and credits. Even with the journal, reduces these problems.

(viii) Once a transaction is recorded in the journal, it is not necessary to post it immediately in the ledger accounts. In this way, the journal allows the delayed posting.

For more help in Advantages of Journal please click the button below to submit your assignment: