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 the 4 special journals in accounting?

Most companies have four special journals, but there can be more depending on the business needs. The four main special journals are the sales journal, purchases journal, cash disbursements journal, and cash receipts journal. These special journals were designed because some journal entries occur repeatedly.

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 examples of special journals?

Types of Special Journals

  • Purchases journal.
  • Purchases returns and allowances journal.
  • Sales journal.
  • Sales returns and allowances journal.
  • Cash receipt journal.
  • Cash payment journal.

What is the special journal or specialized journal used to record money received?

Cash Receipts Journal
Special Journals

Journal Name Journal Purpose
Purchases Journal Purchases on credit
Cash Disbursements Journal Paying cash
Cash Receipts Journal Receiving cash
General Journal Any transaction not covered previously; adjusting and closing entries

When special journals are used they are usually used to record each of the four different types of transactions What are these four types of transactions?

A: Date, Debit, Credit and source document are the four parts of a journal entry.

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 journals?

The transaction is recorded in such a way that the double-entry system is also followed therefore the accountant will understand the dual effect of each of them. The biggest advantages of the special journal are that it provides better internal control.

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.

How is general journal different from special journals?

The general journal is made based on the transaction note/receipt as received/issued by the company. Specialized journals are made to support the general journal for regular transaction process and more complicated.

Why do companies use special journals?

Instead of having just one general journal, companies group transactions of the same kind together and record them in special journals rather than in the general journal. This makes it easier and more efficient to find a specific type of transaction and speeds up the process of posting these transactions.

What is the difference between general and special journal?