In Which Case A Transaction Should Be Journalized Or Recorded

A Transaction Should Be Journalized Only At The Time Of What?

A Transaction should be Journalized only if it actually occurs i.e. at a time when it is actually occurred.

All transactions are recorded in support of Source Documents such as Voucher, Invoice, Receipts, etc., which provides evidence of a transaction taken place between two or among more than two parties involved in a business transaction.

For Example, On 13^th June, 2021, the ABC company received cash of Rs. 50000 for investment made in a Project of an Investment company, XYZ Company. Then the company issued a receipt, as an evidence of cash receipt, then this transaction is journalized on 13^th January, 2021 as it took place on that particular date.

So, we record a business transaction at a time when it takes place and journalized it either in the Special Journal or in the Journal Proper / General Journal.