Narration

A/c entries 886 views 5 replies

Is "Being" required for Accounting narrations or not?

Replies (5)

narration is not mandatory ...its depend upon the nature of transaction 

NO Accounting standard or accounting policy has stated that narration is mandatory.......... and many of the accountants including CA's are stating such an opinion which even Luca pacioli in the first book of accounting Summa de arithmetica, geometria, proportioni et proportionalità narration is compulsory according to him he just said that the transaction can be explained with the help of narration.
 

It is neccessary not mandatory coz it gives additional information regarding journal entry.

I just want to know if the word "Being" is required in the narration or not? What is the current practice?

no never .. narration is only explanation..u can discrive in yr own language

one of the major omission in accounting standard is narration and now that put lot of trouble of in vouching the same, especially in cash and journal vouchers, as there is no details at all about the transactions. narration is a simple information, that supports the transaction, which is self explanatory. this narration wll help yu to track the details, even after 5 years , when yu filter the transactions for a querry. This narration part was totally neglected especially after the accounting system followed in ERP and SAP oriented software. In tally, still we have a narration systen, where the person accounting can simply record the details of a particular transactions. A short and sweet information abt the transaction will help the company in lots and lots, in future


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