Journalising means recording a transaction

In  the preparation of the accounts journal play a very important role. Journal is derived from the french word 'Jour' which means a day. Journal, therefore, means daily record of business transactions. Journal is a book of original entry because transaction is first written in the journal from which it id posted to the ledger at any time.  Journalising means recording a transaction in the journal and the form which it is recorded is known as journal entry. If two or more transaction of the same nature occurs on the same day and either the debit account or credit account is common such transaction can be conveniently entered in the journal in the form of a combined journal entry instead of making a separate entry for each transaction. Such kind of entry known as compound journal entry.

In a going concern, the balances of the previous year appearing in the various accounts are brought forward at the beginning of the new accounting year by means of a journal entry known as opening entry to incorporate the previous balances in a new set of accounts.