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What are the parts of an account? What is a journal entry? How does a journal help with the recording process?
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There are separate accounts for each asset, each liability and each equity item. Accounts have account title and a reference number unique to them.
Journal entry is an entry to the journal. Journal is a record that keeps accounting transactions in chronological order, Ledger is a record that keeps accounting transactions by accounts. Account is a unit to record and summarize accounting transactions.
The journal makes three significant contributions to the recording process:
The journal discloses in one place the complete effect of a transaction.The journal provides a chronological record of transactions.The journal helps prevent or locate errors because the debit and credit amounts for each entry can be readily compared.
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