Accountancy or accounting is one of the most elaborate subjects. It is vastly sought after by all the business entities to manage their finances. Because of this huge demand, students are drawn towards this stream of studies, hoping for a bright career ahead.
However, for that a student must have a thorough and in-depth knowledge about every wing of Accountancy. There are various topics and disciplines that you must excel in. Many are quite difficult to understand or are tricky. But, schools and universities often assign homework and projects to students, based on these tricky topics. One such topic is Limitations of Journal. While writing the Limitations of Journal Homework Answers, students often face a lot of problems.
Students have confusions regarding these topics. Having a clear concept of every aspect of how this works is very important.
Understand what is Journal:
When you are thinking about how to do your homework on Limitations of Journal, the first thing that you need to make sure is understand what a Journal is.
In Accountancy, it is very important to keep a chronological record of all the transaction entries, including the credit and debit notes. The book in which these chronological records are recorded, is called the Journal.
While teaching about Journals, I always tell my students to delve deep into the topic. Staring from where the term has come from, to the utilities and limitations, everything needs to be known. The word has been derived from the French word “jour” that means “a day”. Hence, it can be said that a journal is a chronological record of all business transactions that has taken place in a single day.
As you write the Limitations of Journal Homework Answers or do a project, if you give a brief history or introduction to this topic, it will be easy for you to impress the professor and fetch better marks.
Utilities of a Journal:
Before you get into the Limitations of Journal, it is important that you understand its utilities. As you clear your doubts regarding its utilities, it will be easier for you to understand its limitations.
- Journal is a primary book of original entry. It means that each and every business transaction will be included in a Journal at first and then in any other record for that matter.
- All transactions in a Journal are recorded in a chronological manner. Hence, there is very little chance of missing out on any transaction.
- Maintaining credit and debit accounts becomes easier with Journal.
- As each and every entry or record in the Journal is based on the Accounting or Source Vouchers, categorizing them becomes easier. The accountant can easily classify the transactions based on their types.
- The purpose of a transaction can well be determined from a Journal.
- As all the records are maintained in clear or proper columns, there is very little chance for mistakes. However, in case there is any, it is absolutely easy to detect them.
- Those, who maintain a sub-journal, can easily maintain a division of labour.
But, along with so many utilities or benefits, there are a number of Limitations of Journal. While writing the Limitations of Journal Homework Answers, it is crucial that you elaborate them.
Making Limitations of Journal Homework Answers Easy:
Like many other wings of accountancy, an Accounting Journal, despite being a very useful element, has a number of limitations as well. As a student, I found them quite difficult to keep in mind and hence, always made mistakes while doing my homework. But, as I learned them separately, it was easier to understand.
Here is a brief discussion that will make it easier for you to solve your projects or complete your homework.
- Bulky and Voluminous:
As you must have understood that a Journal must record the daily records of all sorts of financial transactions, the Journals are almost always bulky and voluminous.
When you write about the Limitations of Journal, start with this point. It is a simple and obvious limitation that needs special mention. Give examples of a few Journal entries and it will be evident in your Limitations of Journal Homework Answers how Journals have limitations.
- Consumes a lot of Time:
The next limitation that you should discuss about is a Journal consumes a lot of time, when all its transaction records are being posted to a ledger account. Since Journal is only a primary book of records, the transactions must be posted to other accounts and this takes a lot of time.
- Difficult to Find Information:
Since a Journal records all the information in chronological orders, if a person does not remember the exact date of transaction, it will be difficult to find the information.
- No Internal Control:
As you go through a Journal, you will see that there is no clear picture of the special transactions as you might find in the subsidiary books or cash books. Hence, there is no internal control over the transactions that you can create through the Journals.
Express your Points with Examples and with Expertise:
Now that you have understood the Limitations of Journal in Accountancy, writing the Limitations of Journal Homework Answers should be easy. Always use examples to express your points. It fetches better score and is an easy method to write answers.
When I faced troubles, I used to seek help from the professionals. There are online professional helping companies. They can help you to complete your homework on time. You will certainly get better scores with professional help. Learn the proper methods to write an answer from them.