Forms of a Journal - JSS1 Business studies Lesson Note

Simple Journal Entry: Records a single transaction, indicating the date, accounts affected, description of the transaction, and amounts debited and credited.

Compound Journal Entry: Involves multiple debits, credits, or both within a single entry, typically used for complex transactions involving multiple accounts.

Narrative Journal Entry: Provides a detailed explanation or narrative alongside the transaction, offering additional context or clarification.

Reversing Journal Entry: Used to reverse a previous entry, typically recorded at the beginning of the new accounting period to correct errors or adjust entries made in the previous period.

Adjusting Journal Entry: Made at the end of an accounting period to record accrued revenues or expenses, prepaid expenses, depreciation, or other adjustments necessary to ensure accurate financial reporting.

Closing Journal Entry: Records the transfer of temporary account balances (revenues, expenses, dividends) to permanent accounts (retained earnings) at the end of an accounting period to prepare for the next period's transactions.