[amp_mcq option1=”Assets column” option2=”Date column” option3=”Description column” option4=”Amount column” correct=”option1″]
The correct answer is: A. Assets column
A journal is a book of original entry where all financial transactions are recorded in chronological order. The standard format of a journal includes the following columns:
- Date: The date of the transaction.
- Account: The account that is being debited or credited.
- Debit: The amount of the debit.
- Credit: The amount of the credit.
- Explanation: A brief description of the transaction.
The assets column is not included in the standard format of a journal because it is not necessary to track assets in a journal. Assets are tracked in the general ledger, which is a more comprehensive record of all financial transactions.
The other options (B, C, and D) are all included in the standard format of a journal.
- B. Date column: The date of the transaction is important because it allows you to track the chronological order of transactions.
- C. Description column: The description column provides a brief description of the transaction, which can be helpful for future reference.
- D. Amount column: The amount column is where you record the amount of the debit and credit.