Scribd Logo
Upload

Welcome to Scribd!

  • 282 views

    Special Journals

    Uploaded by

    samm yuu
    Special journals record repetitive transactions like sales, purchases, and cash receipts/payments. They group similar transactions, like all credit sales, which are recorded in a sales journal. The totals are later transferred to the general ledger on a regular basis, such as daily or monthly. Special journals record transactions in subsidiary accounts as well as general ledger accounts. They make the recording and summarizing of numerous daily transactions more efficient than using only the general journal.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd

    Special Journals

    Uploaded by

    samm yuu
    282 views4 pages
    Special journals record repetitive transactions like sales, purchases, and cash receipts/payments. They group similar transactions, like all credit sales, which are recorded in a sales journal. The totals are later transferred to the general ledger on a regular basis, such as daily or monthly. Special journals record transactions in subsidiary accounts as well as general ledger accounts. They make the recording and summarizing of numerous daily transactions more efficient than using only the general journal.

    Copyright

    © © All Rights Reserved

    Available Formats

    DOC, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Special journals record repetitive transactions like sales, purchases, and cash receipts/payments. They group similar transactions, like all credit sales, which are recorded in a sales journal. The totals are later transferred to the general ledger on a regular basis, such as daily or monthly. Special journals record transactions in subsidiary accounts as well as general ledger accounts. They make the recording and summarizing of numerous daily transactions more efficient than using only the general journal.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    282 views4 pages

    Special Journals

    Uploaded by

    samm yuu
    Special journals record repetitive transactions like sales, purchases, and cash receipts/payments. They group similar transactions, like all credit sales, which are recorded in a sales journal. The totals are later transferred to the general ledger on a regular basis, such as daily or monthly. Special journals record transactions in subsidiary accounts as well as general ledger accounts. They make the recording and summarizing of numerous daily transactions more efficient than using only the general journal.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 4

    Special Journals (also known as subsidiary journals) are chronological records

    of frequently occurring transactions such as sales, purchases and cash


    receipts/payments.
    Repetitive transactions such as sales and purchases are recorded in special
    journals and the totals of these journals are transferred to general ledger on
    a regular basis such as daily, weekly or monthly as if a single transaction has
    occurred in this interval.
    Special journals mostly deal with subsidiary accounts but this is not a rule.
    For example, sales journal is typically used to record credit sales and the
    accounts involved are individual debtors’ accounts (these are subsidiary
    accounts) and sales account which a general ledger account.
    Businesses may need to record countless sales transactions per day.
    Recording all such transaction directly in general journal would be extremely
    time-consuming and error prone. It is much easier and simple to summarize
    all sales transactions during a week, for example, and transfer the total
    amount to general records.

    Format: Special journals are in the form of a table of numerous rows and
    multiple columns. Each transaction takes a single row. The names of columns
    vary based on the type of transaction in a special journal.

    Examples: Examples of special journals which are commonly used are:

    1. sales journal
    2. sales returns journal
    3. purchases journal
    4. purchase returns journal
    5. cash receipts journal
    6. cash payments journal
    A special journal is used to group similar types of transactions, such
    as all sales of merchandise on account, or all cash receipts. The types
    of special journals an enterprise uses depend largely on the types of
    transactions that occur frequently in its business. Most
    merchandising enterprises use the following journals to record
    transactions daily:

    Sales journal-- all sales of merchandise on account.

    Cash receipts journal-- all cash received (including cash sales).

    Purchases journal-- all purchases of merchandise on account.

    Cash payments journal-- all cash paid (including cash purchases).

    If the transaction cannot be recorded in a special journal, it is recorded in the


    general journal. For example, if you had special journals for only the four
    types of transactions listed, purchase returns and allowances or sales returns
    and allowances would be recorded in the general journal. Similarly,
    correcting, adjusting, and closing entries are recorded in the general journal.
    Other types of special journals may be used in some situations. For example,
    where purchase returns and allowances or sales returns and allowances are
    frequent, special journals may be employed to record these transactions.

    The journalization and posting process is illustrated using the sales journal
    and the cash receipts journal. The same procedures apply to all special
    journals with only the column and account names being different.

    Sales Journal

    The sales journal is used to record sales of merchandise on account. Cash


    sales of merchandise are entered in the cash receipts journal. Similarly,
    credit sales of assets other than merchandise are entered in the general
    journal.

    Journalizing Credit Sales

    Each entry in the sales journal used here results in a debit to Accounts
    Receivable and a credit to Sales. Since each sale on account involves a debit
    to Accounts Receivable and a credit of equal amount to Sales, only one line is
    used to record the transaction. Postings from the sales journal are
    made daily to the individual accounts receivable in the subsidiary
    ledger and monthly to the general ledger.
    Illustration 2: Posting the Sales Journal

    You might also like