Q.The Journal is also known as:

This question tests the standard alternate name for the Journal, one of the most frequently asked one-mark questions in this chapter.

The correct option is (b) Book of Original Entry.

The Journal is where every business transaction is recorded for the very first time, in chronological order, before it is posted to any ledger account — this is precisely why it is called the Book of Original Entry (also called the Book of Prime Entry).

The other options can be ruled out as follows: (a) 'Book of Final Entry' is wrong — the Ledger, not the Journal, is where accounts are finally summarised into balances. (c) 'Principal Book of Accounts' is actually a common alternate name for the LEDGER, not the Journal, since the Ledger is the book where all account balances are finally collected. (d) 'Book of Secondary Entry' is wrong — nothing is recorded in the Journal 'secondari …

A common confusion is mixing up the alternate names of the Journal ('Book of Original/Prime Entry') and the Ledger ('Principal Book of Accounts' / 'Book of Final Entry') — the two books' alt …