The following are the objectives of preparing journal:
- To make permanent and systematic record of all the financial transactions.
- To help to prepare the principal book or ledger.
- To provide legal evidence of all the financial transactions performed by the business.
- To present complete information of each transactions.
- To show debit and credit aspects or accounts involved in each transactions.
The following are the main importances of journal:
- It provides the legal evidence of all the transactions performed by an organization.
- It provides the foundation for further accounting processes of the transactions.
- It provides the basis for preparing ledger accounts.
- It helps to minimize errors in recording and posting due to the involvement of both aspects of the transactions.
- It fulfills the further accounting processes of the transactions.