Explain an example how to record the transaction in journal.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Explain an example how to record the transaction in journal.

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While recording a journal entry, the accounting system uses double entry system. Double entry system means every transaction has a debit and credit to certain accounts and both debit and credit are equal amounts which is nothing but transaction amount.

Every journal entry is followed by a narration which briefs about the transaction for which the journal entry recorded.

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