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Rule Debit & Credit: Journal & Ledger Video Lecture | Accountancy Class 11 - Commerce

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FAQs on Rule Debit & Credit: Journal & Ledger Video Lecture - Accountancy Class 11 - Commerce

1. What is the purpose of a journal in debit and credit transactions?
Ans. A journal is used to record all the financial transactions of a business in chronological order. It acts as a primary record that helps in identifying and analyzing the effects of debit and credit entries on different accounts.
2. How does a ledger differ from a journal in debit and credit transactions?
Ans. While a journal is a chronological record of all transactions, a ledger is a collection of individual accounts where debit and credit entries are posted from the journal. The ledger provides a summarized view of all the transactions related to a specific account.
3. What is the significance of debit and credit in journal and ledger entries?
Ans. Debit and credit are used to record the dual effect of each transaction in the journal and ledger. Debits represent the increase in assets and expenses or decrease in liabilities and equity. Credits represent the increase in liabilities and equity or decrease in assets and expenses. The balance between debits and credits helps in ensuring the accuracy of financial records.
4. How are debits and credits applied in journal and ledger entries?
Ans. Debits are recorded on the left side of an account, while credits are recorded on the right side. When a transaction occurs, it is analyzed to determine which accounts are affected and how. The appropriate amount is then recorded as a debit or credit entry in the respective accounts in the journal and later transferred to the ledger.
5. What is the relationship between the journal and ledger in debit and credit transactions?
Ans. The journal serves as the initial record of all transactions, while the ledger provides a more organized and detailed view of each account. Entries from the journal are posted to the appropriate accounts in the ledger, allowing for better analysis and tracking of financial transactions. The journal and ledger are interconnected and form an integral part of the accounting cycle.
82 videos|105 docs|42 tests

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