Characteristics of Journal

Characteristics of Journal

In this article we would explain characteristics of Journal or General journal. Journal is the first book in which financial transactions are recorded with the help of debit and credit rules. Some important characteristics of journal have been explained in this article.

Important Characteristics of Journal

Some important characteristics of journal include book of original entry, chronological recording of transaction, complete information of transaction and use of standard rules  for recording. These characteristics have been briefly explained below

1.   Book of Original Entry

Journal is a book of first entry or original entry. This is an important characteristic of journal. Thus processing of financial information starts from the General journal. Transactions are recorded in Journal with the help of debit & credit rules. These rules have been explained in my other article.

2.   Chronological Order

Second important characteristic of General journal is recording of Transaction in chronological order (Date wise). Each transaction is recorded with the help of a unique number, technically known as voucher number. This number is used to track the transaction from the file/record.

3.   Complete Information

Journal reflects the complete information of the transaction in one place. The narration of transaction is written with each transaction, which briefly describes the transaction. Thus journal contains the complete information of a transaction.

4.   Sequential Control

Another important characteristic of Journal is its sequential control over the financial transactions. It means unrecorded voucher of a particular date can easily be tracked by reviewing the entries in the journal. Thus Journal ensures or facilitates the completeness of financial records.

5.   Standard Rules

Journal is maintained or updated with standard rules of debit and credit. These rules are internationally recognized .These rules have been explained in my other article.

6.   Types of Journal

Journal can be broadly divided into General journal and special journal. These both type have been explained in detail in my other article. Small organization with limited transaction use General journal, while large scale organization also use special journal.

7.   Recording of Transaction

Typically a journal has five columns

1.    First column is date.

2.    Second column is head of account.

3.    Third column folio ( reference to the account maintained in ledger)

4.    Fourth column is Debit shortly written as Dr.

5.    Fifth column is credit shortly written is Cr.

Date	Particular	Folio	Dr.	Cr.
21.08.2016	Purchases		10,000
	Ali			10,000

List of important Characteristics of Journal

Some important characteristic of journal are listed below

1.    Journal is books of original entry.

2.    Journal uses standard rules for recording the transactions.

3.    Journals are maintained in chronological order.

4.    Journal is useful tool to track the omitted transactions.