ICSE Class 9 Answered

1. It is book of original entry.
2. It is used for recording day-to-day transactions in a chronological order.
3. It shows complete details of a transactions in one entry.
4. It gives effect to both the aspects of a transaction i.e. debit and credit.
5. It is the prime book which forms base for further processing of the data recorded.

Advantages: 

1. All the business related information is provided in a chronological order.
2. It gives complete information and explanation of a transaction.
3. It facilitates error free recording of transactions.
4. It also helps locating errors at the initial stage of recording.
5. It facilitates correct posting and balancing of accounts to be used in preparation of financial statements.

Limitations:

1. It follows the prescribed accounting rules and concepts and therefore journalising is not an easy process.
2. It is suitable for lesser number of transactions as recording of large number of transactions will be inconvenient.
3. It does not reveal balances of accounts for which individual ledgers are required to be prepared. Therefore, it cannot be used as substitute to ledger.