Question

explain journal entry with their narration

Answer 1

Answer:-

Journal entry:-

Journal entries are used to record business transactions.

Narration:-

●Because the General Journal records a variety of transactions, the narration is necessary to describe or explain the transaction, and identify the source document.

●OR It assists the audit process by allowing each entry to be traced back to the source document that verified the original transaction.

●In very simple terms, Narration is a short explanation of every transaction, captured under each journal entry.

●There will a Debit and a credit entry for any transaction.

(Being the cost of Furniture (Dining Chair, table purchased on date)

There will a Debit and a credit entry for any transaction.

Example :-

Cash    (debit)

Share capital (credit)

(being issue of shares)