Q.What is a narration? Why is it necessary in a journal entry?

A journal entry that shows only figures, with no explanation, leaves genuine room for confusion later.

A narration is a brief explanation, written in brackets below a journal entry, beginning with the word 'Being', that states the nature of the transaction. It is necessary because it removes ambiguity about what a bare debit/credit entry actually represents, supports later audit or verification, and — for a compound entry especially — is often the only place explaining how a …

A narration is a brief explanatory note, written in brackets immediately below a journal entry and always beginning with the word 'Being', stating the nature of the transaction that the entry records.

Why a narration is necessary:

1. Removes ambiguity — figures alone (e.g. 'Cash A/c Dr. 5,000, To Sales A/c 5,000') do not say whether this was a cash sale, collection of an old due, or something else; the narration states this plainly.
2. Supports audit and later verification — a narration gives an auditor or a later reader of the books the context needed to understand an entry made months or years earlier.
3. Essential for compound entries — where more than two accounts are involved, the narration is frequently the only place that makes clear how a single combined figure (e.g. a cash discount netted against a receipt) was actually worked out. …

Students frequently skip the narration to save time in an exam, treating it as optional — an entry without its narration is marked as in …