as we know we write narration along with each journal entry
but no accounting standard or policy makes it mandatory.
What your view on this matter.
is it practically necessary to write narration?
6 Replies
CA. Sourav Sarkar
(Chartered Accountant )
(24588 Points)
Replied 08 August 2021
Not necessary but writing narration helps to quickly identify the transaction for which the journal posted
prasad Nilugal
(3924 Points)
Replied 08 August 2021
It is necessary to understand to others and auditor ,why we pass journal entry. and other details , it is necessary to write narration , whether it's in law or not .
Rama chary Rachakonda
(Master in Accounts & high court Advocate email ID:ramachary64@gmail.com voice no:9989324294)
(7554 Points)
Replied 08 August 2021
narration is necessary. It must be simple one line text.
Sudhir Kulshreshtha
(Advocate)
(190 Points)
Replied 09 August 2021
Not mandatory but necessary to identify the transaction.Same amount transaction confuse over a period of time and one can not remember all transactions .
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