What types of transactions might be recorded in a special journal?
What types of transactions might be recorded in a special journal?
In contrast to a general journal, each special journal records transactions of a specific type, such as sales or purchases. For example, when a company purchases merchandise from a vendor, and then in turn sells the merchandise to a customer, the purchase is recorded in one journal and the sale is recorded in another.
What are special journals used for in accounting?
What are Special Journals? Special journals are all accounting journals except for the general journal. These journals are used to record specific types of high-volume information that would otherwise be recorded in and overwhelm the general ledger.
What are the 4 special journals in accounting?
The four main special journals are the sales journal, purchases journal, cash disbursements journal, and cash receipts journal.
What is the importance of recording transactions in the special journals?
Special journals handle specific transactions such as cash receipts or sales. The use of special journals significantly reduces the time required to record transactions and post them to the ledgers.
In what order should special journals be posted to the general ledger?
Posting to General and Subsidiary Ledgers
| Question | Answer |
|---|---|
| In what order should special journals be posted to the general ledger? | 1. Sales journal 2. Purchases journal 3. General journal 4. Cash receipts journal 5. Cash payments journal. |
What are the advantages of using a special journals?
Advantages of Special Journal It accumulates similar entries in a single journal. It makes very easy to post entries into the accounts. It reduces the possibilities of errors in posting. It permits greater division of labor.
What is the difference between general journal and special journal?
In general journal all the transactions are recorded in the form of two or more line entry (i.e., debit part in first line and credit part in second line) whereas in special journals all the transactions of sales and purchases are recorded as single line entry with reference of debtors and creditors etc.
What are the advantage of using special journal?
Advantages of Special Journal
- It accumulates similar entries in a single journal.
- It makes very easy to post entries into the accounts.
- It reduces the possibilities of errors in posting.
- It permits greater division of labor.
- It provides total amounts of same transactions.
- It provides the chronology of same transactions.
How beneficial are the special journals in the process of Journalizing and posting?
What are the advantages of using special journals?
How do you Journalize special journals?
Thus, in addition to the general journal, we also have the sales journal, cash receipts journal, purchases journal, and cash disbursements journals….The Sales Journal.
| A. Purchases journal | i. Sales on account |
|---|---|
| B. Cash receipts journal | ii. Adjusting entries |
How do you post entries from special journals to ledgers?
How to post journal entries to the general ledger
- Create journal entries.
- Make sure debits and credits are equal in your journal entries.
- Move each journal entry to its individual account in the ledger (e.g., Checking account)
- Use the same debits and credits and do not change any information.
What are the disadvantages of special journal?
Disadvantages of Special Journal
- It requires a higher knowledge about recording process.
- It cannot record all types of transaction.
- It is comparatively complex than general journal.
- It requires some additional journals, such as memorandum journal, control.
- It records limited types of transactions.
What is the special journal or specialized journal used to record money received?
Cash Receipts Journal
Special Journals
| Journal Name | Journal Purpose | Account(s) Credited |
|---|---|---|
| Sales Journal | Sales on credit | Sales, Inventory |
| Purchases Journal | Purchases on credit | Accounts Payable |
| Cash Disbursements Journal | Paying cash | Cash |
| Cash Receipts Journal | Receiving cash | Could be: Sales, Accounts Receivable, or other accounts |
How do you submit special journals to the general ledger?