Mode of Accounting
Journals and Ledgers
A Journal is a book in which business transactions are entered in chronological order. A record of a single business transaction is called a journal entry. Every Journal entry s supported by a voucher, evidencing the related transaction.
In a journal, several entries are recorded, each of which is unrelated to the other. To know the total effect of all the transactions, each journal entry must be moved/transferred to the account it relates to
A Voucher is a document containing the details of a financial transaction Examples income. A ledger is the book in which all the account are maintained. An Account is a statement of transactions affecting any particular asset, liability, expense or income. A ledger is the book in which all the account are maintained. A chart of accounts is a list of all account titles used by an organisation. The chart of accounts of the business shows the categorization and grouping of its accounts.