Division of Journal – apk upload

Division of Journal

This thing has been convinced now that every transaction is written date wise in Journal first of all. The small business where the number of transactions are less in view of accounts, there whole accounting work of business is done very easily through only two books. These books are Journal and Ledger. But in a big business where on one h and the number of transaction are very much in excess in a day and on the other h and the number of similar transactions are also very much. For example, normally it is possible that selling is done hundreds time in a whole day and transaction of cash is also done hundreds time. If all accountingnwork will be done in Journal, the book of original entry, then to write the transactions of sale, a sales manager will have to open Journal hundreds time to enter records. In the same way a cashier will also enter the accounting in Journal hundreds time whenever there is a transaction of cash. In practical form it is also possible that the sales manager and cashier both may need the Journal at the same time, because thentransaction related to both of them may be happening at the same time. So it is clear that when the number of same type of transaction is very much in quantity, then for convenience Journal is divided in such a way in a separate book so that a separate book is kept with the concerned person for the transactions which are much more in number in business and the accounting work may go on continuously without disturbance. The various books, kept a division of Journal, for this purpose, are called subsidiary books or specialnpurpose original entry books.

Advantages of Division of Journal

1.As due to division there are many subsidiary books for special purpose to write down transactions so the account can be written immediately of the concerned transactions.

2.It is easy to do ledger posting in the concerned accounts.

3.Each type of transactions are written in one book only so the extra time is saved which is wasted in finding accounts.

4.Being a separate book a detailed description can be written related to the transaction, which may be useful in form of reference in future.

5.Every ledger book is written by only a special clerk. Due to this his efficiency is acknowledged and that clerk also works with more alertness realising his responsibilities, it decreases the possibilities of errors.

6.Due to division of Journal many subsidiary books come in existence, which can be carried, easily from one place to another.

7.Due to division of work monopoly is finished so the frauds done in accounts can be controlled till a long extent.

(8)The owner of business can get all the information very easily to see concerned ledgers at any particular time.

(9)The errors of ledgers are located very easily.

Rules of Division of Journal

There are no special rules made related to division of Journal in Double Entry System. As division of Journal is done for convenience, so some assumptions are joined related to this, those assumptions are-

1.When the division of ledger is completed then all thentransactions of same type should be written in the specially made ledger every time.

2.If the division of ledger is done then it is not necessary that generally all ledgers should be kept. It depends on nature of business that which t type of transactions are more in number in business. The transactions, which are more in number, the ledgers only related to those transactions can be kept in business.

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