The following are the objectives of preparing journal:

  1. To make permanent and systematic record of all the financial transactions.
  2. To help to prepare the principal book or ledger.
  3. To provide legal evidence of all the financial transactions performed by the business.
  4. To present complete information of each transactions.
  5. To show debit and credit aspects or accounts involved in each transactions.

The following are the main importances of journal:

  1. It provides the legal evidence of all the transactions performed by an organization.
  2. It provides the foundation for further accounting processes of the transactions.
  3. It provides the basis for preparing ledger accounts.
  4. It helps to minimize errors in recording and posting due to the involvement of both aspects of the transactions.
  5. It fulfills the further accounting processes of the transactions.