Question
Why is journal sub-divided? Name the special journals and state the type of transactions entered in each of them.
Answer :
Word Count : 546
The journal in financial accounting is sub-divided to simplify the process of recording a large number of business transactions. When a business grows, it deals with thousands of repetitive transactions every day, such as sales, purchases, payments, and receipts. Recording all these transactions in a single journal would be time-consuming, cumbersome, and prone to errors. To overcome these difficulties, the journal is divided into different subsidiary or special journals. This sub-division allows systematic and efficient recording of transactions, improves accuracy, reduces duplication, and enables specialization of work. Each type of transaction is recorded in its appropriate book, which saves both time and effort in maintaining accounts. This system also _____ _____ ___ _______ _______ ___ ______ __________ ________ ___ _________.
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The journal in financial accounting is sub-divided to simplify the process of recording a large number of business transactions. When a business grows, it deals with thousands of repetitive transactions every day, such as sales, purchases, payments, and receipts. Recording all these transactions in a single journal would be time-consuming, cumbersome, and prone to errors. To overcome these difficulties, the journal is divided into different subsidiary or special journals. This sub-division allows systematic and efficient recording of transactions, improves accuracy, reduces duplication, and enables specialization of work. Each type of transaction is recorded in its appropriate book, which saves both time and effort in maintaining accounts. This system also _____ _____ ___ _______ _______ ___ ______ __________ ________ ___ _________.
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