Journal - Contents, Format, Characteristics and Advantages of Journal

len Alfred Ajibola - Wed, 17th April, 2019 @ 15:29: PM

Topics in Accounts

Characteristics of Double Entry System Examples on the Principle of Double Entry System Advantages and Limitations of the Double System in Accounting Scheme of work, Financial Accounting, SS1, Third Term Scheme of work, Financial Accounting, SS1, Second Term Scheme of work, Financial Accounting, SS1, First Term Differences between Bookkeeping and Accounting Journal - Contents, Format, Characteristics and Advantages of Journal Bank Wire and Wire Transfer Chart of Accounts Meaning, Importance, Processes, Examples and Steps in Balance Sheet Reconciliations

Academic Questions in Accounts

Please check out our Test Your Knowledge page to see all Questions and Answers

Which of the following statement is true concerning bank wire?

  • A. Another name for bank wire is cash transfer

  • B. The term 'wire' in bank wire signifies a computer based programmed message sent to a bank customer in regards to their account information, transaction and other important financial notifications

  • C. The International Bank Account Number (IBAN) must always be involved when carrying out a bank wire process

  • D. The term bank wire has no significant relationship with wire transfer

  • E. Cyber criminals cannot utilize bank wire threats like CSRS, phishing and whaling to achieve their fradulent act

  • F. All the above statements are true

The following are recommendations to follow during the process of balance sheet reconciliation EXCEPT _____.

  • A. All balance sheet accounts should be reconciled periodically, quarterly or annually

  • B. Comparing the trial balance of both the payables and receivables with the respective aging schedule

  • C. Analysis of enteries and relocating them to a sub-ledger if need be

  • D. Comparing the general ledger trial balance of the account to another source; for instance, a bank statement

  • E. Analysis of the differences in both accounts and making appropriate correction to ensure the correctness of entered information

  • F. None of the above



Click here to read more on its smart academic features. Please kindly recommend to your school

Please click here to kindly support education

What is a Journal?

A journal, also called book of original entry or book of primary entry or book of first entry or day book or chronological book is a book where daily transactions are recorded in a chronological order (the order of occurrence).

A journal contains the total record of all transactions made by a company. It can be distinguished into different types which will include:

  1. Sales journal: For recording inventory and sales.
  2. Cash receipts journal: For recording money received from sales or cash inventory.
  3. Purchase journal: For recording all purchases made by a company.
  4. General journal and so on.

The content of a journal includes the followings:

  1. The date when the transaction occurred.
  2. The description of the transaction.
  3. Debits
  4. Credits
  5. Accounts affected

Please read on Bookkeeping versus Accounting here.

Note: The process of recording a transaction in a journal is called journalizing or journal entry.

After transactions are entered in a journal, it needs to be posted to the appropriate ledger account.

The process of entering a journal into the appropriate ledger account is called ledger posting or ledger entry.

Please read on Balance Sheet Reconciliations here.


Format of writing a Journal

The format for writing a journal will include the following headings:

  • Date

This is the column that contains the date of the business transaction that is been recorded. The date can take a variety of formats, for example:


10 March, 1969


1969/03/10 and so on.


  • Particulars

This is also called the details column. The names of the debited and credited accounts are written here.

The debited account is usually written on the left hand side and will usually end with the phrase “Dr” which stands for debit.

The credited account is written towards the right and may include the phrase “Cr” towards its end.

After the names of both accounts have been entered, a narration is often written below (inside a bracket) to give more details about the transaction.


  • Ledger Folio

When the journal had been transferred to a ledger account, the page number(s) of the ledger where both accounts have been posted are written in the folio column, adjacent to particulars column in the journal.

Once the Ledger folio column had been entered in the journal, it will signify that the transaction was successfully transferred to a ledger.

Therefore the ledger folio column will aid in locating both accounts in the ledger, in addition to indicating a successful transfer from the journal to the ledger.

Please read on Bank Wire and Wire Transfer here.


  • Amount

The column for amount is put into two.

The amount debited is written in the first amount column while the credited amount is written in the second amount column.

Both are written against the columns of their account names.


The structure below shows what the contents of journal should look like:

Date: 10/03/69

Particulars: Textile Acc. Dr | Dec Acc Cr.

Ledger Folio: 5

Amount: 1,000

Amount: 1,000


Note: The recording of a transaction in a journal in which one account is debited while another is credited is called Simple Entry.

The recording of a transaction in a journal in which two or more accounts are debited and two or more accounts credited is called Compound Entry.

Please read on the Principle of Double Entry here.


Characteristics of Journal

  1. The transactions are recorded as soon as they occurred.

  2. Transactions are recorded chronologically.

  3. A narration is often written below the accounts name.

  4. Journal format includes the date of event, particulars, folio and amount.

  5. The amount occupies the last two columns with the first (amount) representing debited amount and the second, credited amount.


Advantage of Journal

  1. A ledger mistake can be corrected with a journal.

  2. It brings about efficiency in the contents of a ledger.

  3. A transaction in a journal can be easily traced chronologically.

  4. Journal presents the full transaction entry.

If You are a Student, Teacher or Lover of Education, please click here to follow LEN ACADEMY on Google News


Alfred Ajibola is a Medical Biochemist, a passionate Academician with over 7 years of experience, a Versatile Writer, a Web Developer, a Cisco Certified Network Associate and a Cisco CyberOps Associate.

Please Register here or Login here to contribute to this topic by commenting in the box below.


Amazing facts in Accounts

It is believed that Bookkeeping is the only English word to contain three sets of double letters repeatedly.

please read our article on bookkeeping vs Accounting here