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The Description column of a two-column journal is used to enter the titles of the accounts affected by each transaction, together with a description of the transaction.

a) True
b) False

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User Haze
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1 Answer

3 votes

Final answer:

The statement is true; the Description column of a two-column journal is indeed for entering account titles and transaction descriptions, resembling the structure of a T-account or balance sheet.

Step-by-step explanation:

The statement that the Description column of a two-column journal is used to enter the titles of the accounts affected by each transaction, together with a description of the transaction, is true. In the world of accounting, a two-column journal, also known as a T-account, is a visual representation used to record the debit and credit sides of financial transactions. The T-account structure is akin to a balance sheet, which is organized with a two-column format. The left-hand side of the T-account represents debits, while the right-hand side represents credits. Typically, the top of the T-account includes the account title, and the body illustrates individual transactions.

When transactions occur, the description of the transaction is documented in the Description column, while the debit or credit amounts are recorded in their respective columns. This allows accountants and business owners to track and reference the nature of every financial transaction over time.

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User DenCowboy
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