Accounting narration

Accounting narration for someone is just formality but for someone it provides information of accounts.. When we pass entries many of entries are similar, the name of head is debit and credited but in 90% cases just the entry do not provide full information, like for purchase we debit purchase and credit bank, it is the half information about the transaction, you cannot know from whom you have purchase, what is the cheque number issued for payment, this type of information is provided in narration. And the length of narration depends on transaction, it can be of 2 words or of 2 lines also.

Dear Rahul

In the accounting narration is very important bcoz narration tell you the reason and overview of that particular entry...for what purpose that entry had been passed

Narration also help to other parson in understanding the transaction for which particular entry or accounting have been done

Dear Rahul,

Narration gives the overall information about Transaction & in future it is very informative for knowledge of particular transaction.

At the time of audit and for reporting purpose narration helps a lot and gives information about under which circumstances those entries passed.Particulary in case of any suspense account or miscallaneous exps type of transactions it helps as an useful input.

In olden days, all entries were to be passed through Journal. Later on subsidiary books and cash/bank book came into existance. These subsidiary books reduced reduced requirement of narration as the relevant information is recorded in the respective column of subsidiary books. With this, only Journal is left out which required both debit and credit at one place. As just debit and credit does not provide required information of the transaction, narration is a must. Thus narration provides information which is not reflected in the account. A classical example is recftification of an error wherein you can mention error/reference and reason for correction. In short, narration is additional information about the transaction and is always helpful.

 

They help you to understand the entry more elaborately!

Narration is as like a sign who help us to go to our destination.

Narration gives the briefly introduction of accounting entey....

narration will certainly help even after a period of long time, abt the nature of transaction, thus avoid the wastage of time in tracing the files for documents.

Please share me any notes regarding " narration writing " if any one has . My mail is - nikhilb.dkf5 @ gmail.com 

Narration helps to find out the error & make correction whenever we view the accounts as follows.

For example, if we purchase stationery & wrongly booked in any other a/c other than "printing & stationery" based on the narration  viz., cost of A4 sheets purchased from xyz & co - bill 123 dt xxxx as mentioned narration we can rectify while going thro' the narration. Hence narration is the key for all entries. In fact in Audit also they will ionsist.

Narration is a thing if we considered it as importent it will assisit us through out the transaction goes on.