How Journalising Has Been Adapted By Modern Business Practice
Nowadays most accounting is automated by a computer, but this wasn’t always the case. An accountant used to have to record transactions in a book called a journal. This was a record of both outgoing and incoming transactions and was essential for businesses if they wanted to maintain an up to date transaction record.
Despite it becoming a largely autonomous process journalising remains an important task carried out by businesses. All of the fundamental rules are transferred from the old book keeping ways which is why it’s important to understand at least the basics of journalising.
In manual accounting each financial transaction is first recorded in a book called a journal. In that accounting journal entry the title of the account to be debited is listed first, followed by the amount to be debited. The title of the account to be credited is listed below and to the right of the debit, followed by the amount to be credited.