What is the purpose of Journal Entries?

Journal entries provide foundational information for all other financial reports and are used by auditors to analyze how financial transactions impact a business.

OR

The Journal entries apply to a record of events that is maintained on a regular basis. As it pertains to bookkeeping, a journal is a record of transactions listed as they occur that shows the specific accounts affected by the transaction. For example, your journal for Monday might contain entries for the sales of Widget A, Gadget B and Widget C. The journal can tell you how much your total sales were for Monday, which might be handy if you want to compare Monday sales with Wednesday sales. However, if you want to know how much of your monthly income was derived from Widget C sales, you would have to locate every sale of that item in your journal and total them.

AND

Journal entries are assigned to specific accounts using a Chart of Accounts, and the journal entry is then recorded in a ledger account.

Journal provides chronological approach of all business transactions. If we add balances of general accounts we will achieve completeness and correctness of business transactions in the accounting system.

Many Thanks for inviting

Technically speaking in double entry system of book keeping every entry is a journal entry, so if we observe every  transaction is journal entry like salary paid, sales, purchases, depreciation etc. all

entries are done through journal entry where after every debit there is corresponding credit and after every credit there is corresponding debit.

Further in order to rectify a wrong entry a new journal entry can be passed to make it as a correct.

so in double entry system of book keeping journal entry is of prime importance. 

 

Journal entry is recording financial transaction "economics event's" and this is very important because accountant used his Knowledge to make correct entry 

Thanks & Regards

To record the financial transactions .

Journal Entries play a vital rolein the field of accountancy. it Records all the financial transactions of a bussiness in chronological order and provides a detail record of the transaction . its is the First step in accounting cycle when we record a journal entry it provides base for Accounting cycle

Journal entries are the primary record of transactions. The details of transactions are recorded in the journal book. From the journal entries ledgers sort out the head wise transactions.

Thank you for the good question .In fact the Journal Entry is an important record for all financial  transactions that happens at the business on a DAILY BASIS. Also it considers the basic data that needed to build up all other related and extend reports.

The purpose of the entry in the Journal, the company is keeping all transactions later to make sure to migrate correctly to the general ledger.

It's like writing the company story during the period, and you may tell the story properly at the end. if you have recorded the transactions properly

 

The Purpose Of Journal entries is recording daily financial transactions and it's a very important step in the accounting cycle