4. It keeps a chronological record of all transactions
i.e., arranged according to the order of
occurrence.
The Journal gives a complete picture of each
business transaction and thus , maintains the
identity of the transaction.
Every entry in the Journal is followed with
narration which describes briefly the true nature
and context of the transaction.
4
18. Debit Credit
Date Particulars L.F. amount amount
1) Advertisement a/c Dr. 25 5,000
To Purchases a/c 5,000
(Being goods given as charity) .
2) Goods lost by fire a/c Dr. 26 8,000
To Purchases a/c 8,000
(Being goods destroyed by fire) .
3) Machinery a/c Dr. 27 500
To Cash a/c 500
(Being wages on installation of
machinery paid) .
4) Cash a/c Dr. 28 9,000
To Sales a/c 9,000
(Being sale of goods worth Rs.10,000
less 10% trade discount) .
18