The major advantage of the journal proper is that it
Answer Details
The major advantage of the journal proper is that it serves as a chronological record of all financial transactions of a business in one central location. This means that every time a transaction occurs, it is recorded in the journal, which helps to ensure that all financial information is accurately captured and organized.
This makes it easier to prepare the financial statements of a business, including the balance sheet, income statement, and cash flow statement, as all the necessary information is already in one place. The journal also serves as a reference for the bookkeeper, who can use it to ensure that every transaction is recorded accurately and in the correct account.
While the journal may indirectly help prevent fraud and theft, that is not its main purpose. Similarly, while the banking industry may use financial statements in their operations, the journal proper itself does not directly help the banking industry to be more efficient. Its primary benefit is providing a comprehensive and reliable record of a business's financial transactions.