The heart of book keeping system is the ___________.
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A. B. C. D.C
The heart of a bookkeeping system is the journal, and the correct answer to the question is option D: Journal.
Explanation: A bookkeeping system is a method used to record and track financial transactions of a business. It involves the systematic recording, organizing, and summarizing of financial data to provide an accurate and complete picture of the company's financial activities.
The journal is a fundamental component of the bookkeeping system. It is where all financial transactions are initially recorded in chronological order. Each transaction is entered into the journal using a specific format, typically including the date of the transaction, the accounts involved, a brief description, and the monetary amount.
The purpose of the journal is to provide a detailed record of every transaction, serving as a chronological diary of financial events. It captures the essential information necessary to maintain accurate accounting records and serves as a reference for future analysis, reconciliation, and auditing.
The journal entries recorded in the journal are eventually transferred to other accounting books and records, such as ledgers, which provide a categorized and summarized view of the financial transactions. These entries are then used to prepare financial statements, such as the balance sheet, income statement, and cash flow statement.
In summary, the journal is the core component of a bookkeeping system because it serves as the initial record of all financial transactions, providing the foundation for accurate and reliable financial reporting.