Narration of an Entry

Narration is the remark or short explanation of the financial transaction.

It is put below in every journal entry.

From journal entry, we understand about transaction.

In some countries, narration is written without prefix; in some countries, it is written with prefix ‘being’ or ‘for’.

Therefore, narration must be clear to understand the transaction.

But, it is not necessary in ledger.

Wrong entry for wages for installation of plant Rs 5,000:

Wages account            Dr      5,000

           To Cash account                            5,000

(Being: wage paid for installation of plant)

If there is not narration, no one can say it is wrong entry.

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ACCOUNTING EQUATION http://tiny.cc/c89jkz

BASIC JOURNAL ENTRIES IN NEPALI http://tiny.cc/uaakkz

BASIC JOURNAL ENTRIES http://tiny.cc/8aakkz

JOURNAL ENTRY AND LEDGER http://tiny.cc/caakkz

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CASH BOOK http://tiny.cc/889jkz

TRIAL BALANCE & ADJUSTED TRIAL BALANCE http://tiny.cc/c59jkz

BANK RECONCILIATION STATEMENT (BRS) http://tiny.cc/q59jkz

DEPRECIATION http://tiny.cc/ugakkz

FINAL ACCOUNT: CLASS 11 http://tiny.cc/y89jkz

ADJUSTMENT IN FINAL ACCOUNT http://tiny.cc/keakkz

CAPITAL AND REVENUE http://tiny.cc/peakkz

SINGLE ENTRY SYSTEM http://tiny.cc/n19jkz

NON-PROFIT ORGANIZATION (NON-TRADING CONCERN http://tiny.cc/j09jkz

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GOSWARA VOUCHER (JOURNAL VOUCHER) http://tiny.cc/hcakkz

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