Course Code: ACC 102

Module #16

Name: _____________________________________ Class number: _________________

Section: _________ Schedule: _________________ Date: ________________________

Lesson title: Special and Combination Journals, and Voucher Materials:

System Module #16
Objectives:
1. Appreciate the convenience of using control and References:
subsidiary ledgers Fundamentals of Financial
2. Take advantage of the special journals. Accounting and Reporting by
3. Differentiate the uses of each special journal. Win Ballada
4. Be able to cross-foot special journals and post them in
the general journal.
5. Make use of the different source documents in the
voucher system.

Productivity Tip:
Have trouble sleeping at night? Sleep is also important in productivity. Avoid using your cellphones
at a certain amount of time, 10 P.M. for instance, and consistently sleep at the same time every
day. This is done so that your body gets used to having a sleep schedule which helps in sleep
quality. Also don’t forget to sleep for at least 6-8 hours a day!

A. LESSON PREVIEW/REVIEW
1) Introduction (2 mins)

Use Special Journals makes the recording of transactions efficient as it permits division of labor. When
special journals are used, the recording step in the account in the accounting cycle can be divided
among several persons, each of whom is responsible for particular type of transactions. Personnel’s
making entries in special journals need not have a thorough knowledge of the entire accounting
system.

The use of special journals often reduces recording time. Special journal transactions need no routine
explanations for each entry. Also, because special column headings are used, account titles need not
be repeated unlike in the general journal.

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 Course Code: ACC 102
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Name: _____________________________________ Class number: _________________

Section: _________ Schedule: _________________ Date: ________________________

2) Activity 1: What I Know Chart, part 1 (3 mins)

Try answering the questions below by writing your ideas under the What I Know column. You may use
key words or phrases that you think are related to the questions. Answer the What I learned section
after reading the Concept notes

What I Know Questions: What I Learned

What are special journals?

What are the advantages of using

special journals?

How do we use purchase

journals?

B. MAIN LESSON
1) Activity 2: Pre-Printed Content Notes (13 mins)

SPECIAL JOURNALS

Special Journals are books of original entry other than the general journal. These are designed for
recording specific types of transactions of a similar nature.

Journal Specific Transaction Recorded Posting

Codes
Sales journal Sales of merchandise on account SJ
Cash receipts journal Receipts of cash CRJ
Purchase journal Credit purchases of merchandise and other items PJ
Cash payments journal Payments of cash CPJ
General journal Entries that do not fit in the other journals GJ

Cash sales are usually recorded in the cash receipts journal rather than in the sales journal because cash
is best controlled when all routine cash receipts are recorded in one journal. Similarly, an entity can
increase control over cash disbursements by recording cash purchases of merchandise or other items in
the cash disbursements journal rather than in the purchases journal.
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Section: _________ Schedule: _________________ Date: ________________________

Recording transactions in sales and cash receipts journals

(Illustrative Problem)

Transactions:
April 10. Sold merchandise on account to R. Yuuki, P32,000. Invoice No. 333; 3/10; n/30
April 12. Sold merchandise on account to B. Cruz, P62,000. Invoice No. 334; 3/10; n/30
April 15. Sold P46,000 merchandise for cash.
April 19. Received payment from R. Yuuki less discounts.
April 29. B. Cruz returned P11,000 of merchandise from the sale in April 12.
April 30. The owner invested additional P40,000 cash.

SALES JOURNAL

Date Invoice Account Debited Post Reference Accounts Receivables Sales

No. DR CR

April 10 No. 333 R. Yuuki 32,000 32,000

No. 334 B. Cruz 62,000 62,000
12
TOTALS 94,000 94,000

CASH RECEIPTS JOURNAL

Date O.R. Description Debits Credits

No. Accounts Sales Other Accounts
Cash Sales Receivable Account PR Amount
Discounts Title
April 15 001 Cash sales 46,000 46,000
002 Collection - 31,040 960 32,000
19 R. Yuuki
003 Investment 40,000 Owner, 40,000
30 Capital
TOTALS 117,040 960 32,000 46,000

Note: April 29 transaction will be recorded in the General Journal together with write-offs of uncollectible
accounts; and certain non-cash transactions involving notes receivable and notes payable.

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PURCHASE JOURNAL

The purchase journal is designed to record purchases of MERCHANDISE, SUPPLIES and OTHER ASSETS
on account.

 The primary source document used as the basis for the entries is the receiving report (RR).
 The purchase journal has special columns for debits to purchases, office supplies, and store supplies,
as well as for credits to accounts payable.
 A column is also provided for debits to accounts for which no special column is available.

CASH PAYMENTS JOURNAL

 All cash payments are recorded in a cash disbursements journal.
 Cash purchases are recorded in the cash disbursements journal.
 Cash disbursements journal has special columns for credits to cash and purchases discounts, and for
debits to accounts payable and purchases.

GENERAL JOURNAL
Transactions that cannot be recorded appropriately in a special journal are recorded in the general
journal.

Examples include merchandise returns; write-offs of uncollectible accounts; and certain non-cash
transactions involving notes receivable and notes payable.

Year-end adjusting entries are also recorded in the general journal. Adjusting journal entries are
entries used to update the accounts prior to the preparation of financial statements because they affect more
than one accounting period. The following are the accounts subjected to adjustments:
1. Prepayments
2. Unearned or Deferred Income
3. Accrued Expenses
4. Accrued Income
5. Bad Debts/Doubtful Accounts
6. Depreciation

POSTING is the process of transferring the information found in the journal into the book of final entry known
as the general ledger (GL).

 The general ledger is a group of accounts used by the company.

 The general ledger summarizes the increases or decreases of individual accounts which are called
“control account”. The balance of the control account should equal the total of the individual account
balances in the subsidiary ledger.
 A subsidiary Ledger (SL) is a detailed record of transactions with individual customers or suppliers.
Entries into the SL will come from either the individual entries in the journal or from the source
documents.
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 Debits in the journals are correspondingly posted as debits in the GL, and credits in the journals are
likewise posted as credits in the GL.

Steps in posting to the GL:

1. From the journal, copy the period covered by the journal to the general ledger, for ex. May 1-31, 2022.
2. Under the journal reference (J.R.) column of the general ledger, copy the page number of the journal.
3. Under the debit column in the GL, transfer the total of the debit amounts from the journal. Under the
credit column in the GL transfer the total of the credit amounts from the journal.

2) Activity 3: Skill-building Activities (with answer key) (18 mins + 2 mins checking)

Directions: Below are the five (5) duly accomplished special journals. Post the data from these
special journals to the appropriate ledgers—general and subsidiary

SPECIAL JOURNALS
SALES JOURNAL
Page 1
Date Invoice Account Debited Post Reference Accounts Receivables Sales
No. DR CR

April 10 No. 333 R. Yuuki SL-1 32,000 32,000

No. 334 B. Cruz SL-1 62,000 62,000
12
TOTALS 94,000 94,000
GL - page1 GL – page 2

CASH RECEIPTS JOURNAL

Page 1
Date O.R. Description Debits Credits
No. Accounts Sales Other Accounts
Cash Sales Receivable Account PR Amount
Discounts Title
April 15 001 Cash sales 46,000 46,000
002 Collection - 31,040 960 32,000
19 R. Yuuki
003 Investment 400,000 Owner, GL2 400,000
30 Capital
TOTALS 477,040 960 32,000 46,000
GL-1 GL-2 GL-1 GL-2

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PURCHASES JOURNAL
Page 1
Credits Debits
Other Accounts
R.R. Name of Accounts Office Store
Date No. Supplier PR Account Title PR Amount
Payable Purchases Supplies Supplies
Oct 1 020 Supply Co SL1 54,000 54,000

6 021 Camp Co SL1 92,000 92,000

17 022 Cetra Co. 39,000 39,000

19 023 Palace Co 41,000 41,000

25 024 SedanCo. 58,000 58,000

TOTALS 284,000 284,000
GL- 2 GL- 1

CASH PAYMENTS JOURNAL

Page 1
Debits
Credits Other Accounts
Check Cash Purchase Accounts Account Title
Date Number Description Discount Payable Purchases PR Amount
Oct 4 79 Supply Co. 52,920 1,080 54,000 SL1
– payment
7 80 Freight in 3,000 Freight In GL3 3,000
10 81 Camp Co - 85,260 1,740 87,000 SL1
payment
15 82 Salaries 12,000 Salaries Exp GL2 12,000
16 83 Cash 19,000 19,000
Purchase
21 84 Insurance 2,000 Ins. Expense GL2 2,000
24 85 Drawing 15,000 Owner, GL1 15,000
Drawing
30 86 Payment - 11,000 11,000
Palaces
TOTALS 200,180 2,820 152,000 19,000
GL-1 GL-2 GL-1 GL-2

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GENERAL JOURNAL

Date Account Titles P.R. Debit Credit

Oct. 9 Accounts Payable—Cetra Company GL-1 11,000
Purchase Returns & Allowances GL-3 11,000

Accounts Payable—Camp Co. GL-1 5,000

30
Purchase Returns & Allowances GL-3 5,000

31 Accounts Payable—Sedan Company GL-1 8,000

Purchase Returns & Allowances GL-3 8,000

GENERAL LEDGER Page 1

Account: Cash
Date Explanation J.R. Debit Credit Balance

Account: Accounts Receivable

Date Explanation J.R. Debit Credit Balance

Account: Accounts Payable

Date Explanation J.R. Debit Credit Balance

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Section: _________ Schedule: _________________ Date: ________________________

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Account: Owner, Capital

Date Explanation J.R. Debit Credit Balance

General Ledger Page 2

Account: Owner, Drawing

Date Explanation J.R. Debit Credit Balance

Account: Sales
Date Explanation J.R. Debit Credit Balance

Account: Sales Discount

Date Explanation J.R. Debit Credit Balance

Account: Salaries Expense

Date Explanation J.R. Debit Credit Balance

Account: Insurance Expense

Date Explanation J.R. Debit Credit Balance

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Account: Purchases
Date Explanation J.R. Debit Credit Balance

General Ledger Page 3

Account: Freight In
Date Explanation J.R. Debit Credit Balance

Account: Purchase Returns & Allowances

Date Explanation J.R. Debit Credit Balance

Account: Purchase Discounts

Date Explanation J.R. Debit Credit Balance

SUBSIDIARY LEDGERS Page 1

ACCOUNTS RECEIVABLE

Customer: R. Yuuki
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Name: _____________________________________ Class number: _________________

Section: _________ Schedule: _________________ Date: ________________________

Date Explanation J.R. Debit Credit Balance

Customer: B Cruz

Date Explanation J.R. Debit Credit Balance

SUBSIDIARY LEDGERS Page 2

ACCOUNTS PAYABLE

Supplier: Supply Company

Date Explanation J.R. Debit Credit Balance

Supplier: Camp Company

Date Explanation J.R. Debit Credit Balance

Supplier: Cetra Company

Date Explanation J.R. Debit Credit Balance

Supplier: Palace Company

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Name: _____________________________________ Class number: _________________

Section: _________ Schedule: _________________ Date: ________________________

Date Explanation J.R. Debit Credit Balance

3) Activity 4: What I Know Chart, part 2 (2 mins)

Now, I really would like to discover What You Know NOW by referring to the third column of the
Chart contained in your Activity 1.

4) Activity 5: Check for Understanding (5 mins)

Indicate in which of the five journals each transaction must be recorded. Write the letter only.
A. Sales Journal
B. Cash Receipts Journal
C. Purchases Journal
D. Cash Payments Journal
E. General Journal

_____ 1. Sold merchandise on account.

_____ 2. Paid cash for rent.
_____ 3. Purchased merchandise on account.
______ 4. Returned merchandise bought due to wrong specifications.
_____ 5. Purchased a computer desk top on account.
______ 6. Issued a promissory note to settle an account.
_____ 7. Sold merchandise on account.
______ 8. Received a note in settlement of customer’s account.
_____ 9. Bought goods. Terms: 2/10, n/30.
_____ 10. Paid Salaries
_____ 11. Purchased merchandise, COD.
_____ 12. Paid telephone expense
_____ 13. Purchased supplies on account.
_____ 14. Bought goods on account.
_____ 15 Purchased merchandise. Terms: 2/10, n/30
_____ 16. The owner made additional investment in the business.
_____ 17. Purchased equipment for cash.
_____ 18. Bought supplies on credit.
_____ 19. Paid an account in full.
_____ 20. Owner withdrew cash for personal use.
_____ 21. Paid workers’ salaries.
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_____ 22. Paid utilities for the month.

_____ 23. Sold merchandise on account.
_____ 24. Received the bill from Dagupan Electric Corporation
______25. Received cash for goods sold.

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Section: _________ Schedule: _________________ Date: ________________________

A. LESSON WRAP-UP
1) Activity 6: Thinking about Learning (5 mins)
Congratulations for finishing this module! Shade the number of this module that you have finished.

b) Think about your learning by filling up your “My Learning Tracker” below. Write your learning targets,
your scores, and learning experience for this session and deliberately plan for our next learning
session.

Date Learning Target/Topic Scores Action Plan

What module# did you do? What What contributed to the quality of your performance today?
What’s the date What were your scores
were the learning targets? What What will you do next session to maintain your performance or
today? in the activities?
activities did you do? improve it?

FAQs

1. What are combination journals?

- Combination journals combine the features of the general journal and the special journals in a
single record. If a small business entity has enough transactions to make the journal difficult to use
but too few transactions to make it worthwhile to set up special journals, the combination journal
offers a solution. This journal is used most often in a small professional offices and small service
businesses.

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KEY TO CORRECTION

Activity 3
GENERAL LEDGER Page 1

Account: Cash
Date Explanation J.R. Debit Credit Balance
April 30 April 1-30 receipts CRJ-1 477,040 477,040
Oct 31 October 1-30 payments CPJ-1 203,600 273,440

Account: Accounts Receivable

Date Explanation J.R. Debit Credit Balance
April 30 April 1-30 sales on account SJ-1 94,000 94,000
30 April 1-30 collections CRJ-1 32,000 62,000

Account: Accounts Payable

Date Explanation J.R. Debit Credit Balance
Apr 30 April 1-30 purchases on account PJ-1 284,000 284,000
30 Returns to suppliers GJ-1 11,000 273,000
Oct 9 Returns to suppliers GJ-1 5,000 268,000
30 Returns to suppliers GJ-1 8,000 260,000
30 October 1-30 payments CPJ- 152,000 108,000
1

Account: Owner, Capital

Date Explanation J.R. Debit Credit Balance
Apr 30 Additional Investment CRJ1 400,000 400,000

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General Ledger Page 2

Account: Owner, Drawing

Date Explanation J.R. Debit Credit Balance
Oct. 30 For personal use CPJ1 15,000 15,000

Account: Sales
Date Explanation J.R. Debit Credit Balance
Apr 30 April 1-30 sales on account SJ-1 94,000 94,000
April 1-30 cash sales CRJ-1 46,000 140,000

Account: Sales Discount

Date Explanation J.R. Debit Credit Balance
Apr 30 Customer discount CRJ-1 960 960

Account: Salaries Expense

Date Explanation J.R. Debit Credit Balance
Apr 30 April 1-15 payroll CPJ-1 12,000 12,000

Account: Insurance Expense

Date Explanation J.R. Debit Credit Balance
Apr 30 Annual premiums CPJ-1 2,000 2,000

Account: Purchases
Date Explanation J.R. Debit Credit Balance
Oct 31 October 1-31 purchases on account PJ-1 284,000 284,000
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October 1-31 cash purchases GJ-1 19,000 303,000

General Ledger Page 3

Account: Freight In
Date Explanation J.R. Debit Credit Balance
Oct. 31 Freight on purchases of merchandise CPJ-1 3,000 3,000

Account: Purchase Returns & Allowances

Date Explanation J.R. Debit Credit Balance
Apr 29 Returns to suppliers GJ-1 11,000 11,000
Oct 9 Returns to suppliers GJ-1 5,000 16,000
30 Returns to suppliers GJ-1 8,000 24,000

Account: Purchase Discounts

Date Explanation J.R. Debit Credit Balance
Oct. 31 Discounts from suppliers CPJ-1 2,820 2,820

SUBSIDIARY LEDGERS Page 1

ACCOUNTS RECEIVABLE

Customer: R. Yuuki

Date Explanation J.R. Debit Credit Balance

April 10 Sales on account SJ-1 32,000 32,000
19 Collected in full CRJ-1 32,000 0

Customer: B Cruz
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Date Explanation J.R. Debit Credit Balance

April 12 Sales on account SJ-1 62,000 62,000

SUBSIDIARY LEDGERS Page 2

ACCOUNTS PAYABLE

Supplier: Supply Company

Date Explanation J.R. Debit Credit Balance
Oct. 1 Purchases on account PJ-1 54,000 54,000

Supplier: Camp Company

Date Explanation J.R. Debit Credit Balance
Oct. 6 Purchases on account PJ-1 92,000 92,000
9 Returns due to wrong specifications GJ-1 5,000 87,000
10 Full payment CPJ-1 87,000 0

Supplier: Cetra Company

Date Explanation J.R. Debit Credit Balance
Oct 17 Purchases on account PJ-1 39,000 39,000
30 Returns GJ-1 11,000 28,000

Supplier: Palace Company

Date Explanation J.R. Debit Credit Balance
Oct. 19 Purchases on account PJ-1 26,000 26,000

Activity 5
1. A 6.E 11.D 16.B 21.D
2.D 7.A 12.D 17.C 22.D
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3.C 8.E 13.D 18.C 23.A

4.E 9.C 14.C 19.D 24.E
5.C 10.D 15.C 20.D 25.B

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