Journal

A journal is the primary record in accounting where a business notes each financial transaction in the sequence in which it takes place. It is referred to as the first book of entry because every transaction is initially documented here, including the date, the accounts involved, the amounts, and a brief explanation. Journals operate under the double-entry principle, which requires that every transaction affect at least two accounts—one debited and one credited.

Example: If a firm purchases office furniture worth ₹50,000 and pays immediately in cash, the entry would record Office Furniture as debited and Cash as credited. Maintaining the journal systematically ensures accuracy and supports the later preparation of ledgers, the trial balance, and final accounts.