(i) Bulky and voluminous: Journal is a main book of original entry which records all business transactions. Sometimes, it becomes so bulky and voluminous that it cannot be handled easily. (ii) Information in scattered form: In this book, all information is recorded on daily basis and scattered form; hence it is very difficult to lo…

Meaning of Journal: Journal is the book of original entry in which, after following the rules of debit and credit, all business transactions are recorded in a chronological order. The word journal has been derived from the French word "jour", which means "a day". Thus, journal means a book which records all mone…

The ledger has the following main characteristics:   It has two identical sides - left hand side (debit side) and right hand side (credit side).   Debit aspect of all the transactions are recorded on the debit side and credit aspects of all the tra nsactions are recorded on credit side according to date. The difference of the tot…

The book in which accounts are maintained is called ledger. Generally, one account is opened on each page of this book, but if transactions relating to a particular account are numerous, it may extend to more than one page. All transactions relating to that account are recorded chronologically. From journal each transaction is post…

Accounting Conventions  There are four main conventions in practice in accounting: conservatism; consistency; full disclosure; and materiality. Conservatism   is the convention by which, when two values of a transaction are available, the lower-value transaction is recorded. By this convention, profit should never be overestimated,…