The common four types of special journals are discussed below:
- Sales journal,
- Purchases Journal,
- Cash Receipts journal,
- Cash Payments Journal.
- Sales journal.
- Cash receipts journal.
- Expense journals.
What are two or three types of Special Journals?
What are the different types of journal writing?
- Bullet Journal. One of the most popular journaling methods is the bullet journal.
- Calendar Journaling.
- Meditation Journaling.
- Video Journaling.
- Creative Journaling.
- Travel Journaling.
- Gratitude Journaling.
- Food Journaling.
What are examples of Special Journals?
These are:
- Purchases journal
- Purchases returns and allowances journal
- Sales journal
- Sales returns and allowances journal
- Cash receipt journal
- Cash payment journal
What are the best special education journals?
- School Library Media Research. ...
- InterActions. ...
- Frontiers. ...
- Journal of American Indian Education. ...
- GEFAME. ...
- Journal of Food Science Education. ...
- Journal of Education for International Development. ...
- The International Electronic Journal of Health Education. ...
- Journal of Research in Rural Education. ...
- Journal of Southeast Asian American Education and Advancement. ...
What are special journals, and why are they used?
Special journals are journals that an organization maintains to record their business transactions that are frequent or repetitive in nature. When transaction volume of a business rises and a single journal becomes inadequate, it is advantageous to maintain a separate journal for all frequent or repetitive transactions such as purchases, purchases returns, sales, sales returns, cash receipts and cash payments etc.
What are the types of special journal?
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 is a special journal system?
A special journal is a set of journals used to record same type of transactions. For example, if the company experiences 10,000 sales transactions, it may create one or more than one sales journal to post such entries accordingly. It reduces clerical work and gives employees less responsibilities.
What are the three 3 most important pieces of information to be included in any journal entry?
What Is Included in a Journal Entry?A header, which is a descriptor of the entry type, and the date entered in the journal;A unique numerical identifier or reference number;One or more accounts and amounts that will be debited by the transaction and the date(s) these debits are made;More items...•
What are the most common special journal explain?
The most common special journals include the sales, cash receipts, purchases, and cash disbursements journals. All of these are used to record specific transactions and keep organized records outside of the general journal. In other words, this system is a way to categorize transactions into different types and groups.
What are the 5 special journals?
Examples of special journals are the cash receipts journal, cash disbursements journal, payroll journal, purchases journal, and sales journal.
What are special journals explain with examples?
Special journals are designed as a simple way to record the most frequently occurring transactions. There are four types of Special Journals that are frequently used by merchandising businesses: Sales journals, Cash receipts journals, Purchases journals, and Cash payments journals.
What are the 3 books of accounts?
WHAT ARE THE KINDS OF BOOKS OF ACCOUNTS?General Journal. This is called the book of original entry because this is the first book where the business transaction are recorded. Journalizing is the process of recording in the journal.General Ledger. This is called the book of final entry.
What are the three rules of journal entry?
3 Golden Rules of AccountingRule 1 - Debit the receiver, credit the giver.Rule 2 - Debit what comes in, credit what goes out.Rule 3 - Debit all expenses and losses and credit all incomes and gains.
What are the examples of journal?
Here are some different kinds of journals that many writers find fulfilling....Journal ExamplesTravel Journal. ... School Journal. ... Project Journal. ... Diet Journal. ... Therapy Journal. ... Dream Journal. ... Gratitude Journal. ... Family Journal.
What are the types of journals in accounting?
Types of Journal in AccountingPurchase journal.Sales journal.Cash receipts journal.Cash payment/disbursement journal.Purchase return journal.Sales return journal.Journal proper/General journal.
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.
Which of the following is not a special journal?
c) The general journal is not considered a special journal.
Why are special journals important?
Special journals record transactions chronologically, which reduces the chances of fraudulent alteration in an account. Moreover, a particular person is responsible for its correctness.
Why do we need special journals?
Special journals are required only for the types of transactions that occur frequently or of repetitive nature. For example, a business concern has many transactions in which cash is received and many in which cash is paid out. One special journal will be used for recording cash receipts and another for recording cash payments.
How many times does a special journal account be debited?
For example, if a firm has 2,000 purchases on account during the month, the purchases account will be debited once, not 2,000 times.
How does the adoption of special journals improve efficiency?
By the adoption of special journals, the work of recording business transactions can be entrusted to several employees who will become more familiar with their work. It is like the division of labor that increases the efficiency of book-keepers or accountants.
How many groups of transactions can a firm have?
Most of the firm’s transactions can be classified into four groups. These groups, as well as the special journal used to record the appropriate transactions, are shown below:
What journal is used when a transaction does not fit into one of the above groups?
If a particular transaction does not fit into one of the above groups, it is recorded in the general journal. This journal is the type we have been using up to this point.
Can a journal be written up quickly?
In special journals, journalizing can be done by a number of employees simultaneously rather than one employee, thus the business transactions can be written up much more quickly.
Sales journal
A sales journal is a special journal used to record all sales of merchandise on account. The sales journal notes all credit sales delivered to customers. Sales revenues and cash sales are not listed in this journal.
Purchases Journal
The Purchase journal is a special journal used to record all purchases of merchandise on account. The purchases journal lists all credit investing of stock. Entries in this journal normally include the date of the listing, the sign of the supplier, and the expense of the transaction.
Cash Receipts Journal
A cash receipts journal is a special journal used to record all cash received. Transactions that improve cash are recorded in a multi‐column money receipts journal. If sales commissions are offered to customers, the journal introduces a separate debit column for sales commissions.
Cash payments Journal
A cash payments journal is a special journal used to record all cash paid. Transactions that waste cash are recorded in the cash expenditures journal.
What is special journal?
Special Journals are all accounting journals in an organization except the general journal where all the transactions of the similar transactions are recorded at a place in an organized form that helps the accountants and the bookkeepers of the company to keep the track of all the different business activities in a proper manner.
Why are special journals handled by separate persons?
Generally, in large companies, each of the special journals is handled by separate persons, which makes the person specialized in that area, thereby increasing its efficiency of working and reducing the chances of the errors in the bookkeeping.
What is a cash receipt journal?
Cash Receipt Journal records all the transactions in which there receipt of cash by the company like transactions involving the sale of goods for cash, sale of the assets of the company for cash, capital investment by the owner of the company in the form of cash, etc.
What happens when an error occurs while maintaining and recording the transactions in the special journal?
In case of error occurs while maintaining and recording the transactions in the special journal by the person responsible for the same, then it can show the wrong balances of that journal.
What is Special Journal?
A special journal is a journal that has been grouped based on the transaction forms. In other words, it has an understanding as a journal that can be made or classified according to the transaction types. In this case, the accountant must identify all transaction forms that occur in the company and record them in a special journal.
Types of Special Journal
In general, special journals have four types. These types range from purchasing, sales, cash receipts, and cash expenditures special journals. So, how is the full explanation of each special journal type? Let’s take a look at the following explanation:
Special Journal Benefits
The special journal will provide various benefits for accountants. All these benefits certainly will facilitate the company’s operational activities. So, what are the special journal benefits? Here’s the explanation:
Conclusion
A special journal is a journal that can be made or classified by the accountant according to the transaction type. Special journals have various types in the recording process, ranging from purchase, sales, cash receipts, and cash payment journals. Each of these types certainly has a different function.
What are the different types of special journals?
There are four types of Special Journals that are frequently used by merchandising businesses: Sales journals, Cash receipts journals, Purchases journals, and Cash payments journals.
What is a special journal?
e. Specialized lists of financial transaction records. Special journals (in the field of accounting) are specialized lists of financial transaction records which accountants call journal entries. In contrast to a general journal, each special journal records transactions of a specific type, such as sales or purchases.
What is the folio number column in a journal?
Each journal has a folio number column. The number of the ledger account to which the journal entry was posted is recorded in the folio number column of the journal.
How are general journal transactions recorded?
In the general journal, transactions are recorded in several lines (see Figure 1), and each transaction is posted to the general ledger separately . For example, if fifty sales on account were made during one day, fifty ledger postings would have to be made to three general ledger accounts: Accounts Receivable, Sales, and Sale Tax Payable. In special journal, transactions are recorded in a single line, and the format of the journal made it possible to post only the total amount for each account to the general ledger. For example, if fifty sales on account were made during one day, only the total amount for Accounts Receivable, Sales, and Sales Tax Payable were posted to the general ledger. Thus the posting process is more efficient. Figure 2 shows the example formats of the Special Journals.
What is CRJ in accounting?
A cash receipts journal (CRJ) records transactions that involve payments received with cash. Source documents would probably be receipts and cheque butts. The CRJ records the cash inflow of a business. Discount allowed is an expense as the discount allowed is the cost to the seller of obtaining an inflow of cash from a debtor weeks earlier than would be the case.
What is a cash payment journal?
Cash Payments Journals record transactions that involve expenditures paid with cash and involves the cash Source documents are likely receipts and cheque butts. The CPJ records the cash outflow of a business. If the owner of a business withdraws cash from the business an entry is made in the CPJ. Discount received is the cash discount received by a purchaser, it is an income item for the purchaser.
What is source document?
Source documents are business forms that provide evidence of each transaction and give the details that are entered later into one of the journals in a computer accounting system.
Types of Special Journal
Examples of Special Journal
- A company has recorded sales for the financial year for $4,000. The company will record the same in the sales journal which is also known as a special journal. Now while recording the sales the company will create a sales invoice in the name of the company ad it will present the same before the other party on the future date when the payment is required to be made. In the year-e…
Advantages of Special Journal
- Some of the advantages are given below: 1. The special journal is designed in such a way that it is very helpful for the company to post the entries in the books of accounts. The accountant can get detailed information about the ledgers. The changes of getting the posting wrong are minimal to a greater extent. 2. The transactions of the company are recorded in the special journal and each t…
Disadvantages of Special Journal
- Some of the disadvantages are given below: 1. The special journals are very useful techniques when it comes to recording transactions but it can be difficult for the accountant who has limited knowledge regarding the posting. The accounting entries in special cases can be very tedious for those who are not able to understand the accounting concepts and its double entries effect. 2. T…
Conclusion
- The special journal is a specialized journal for special transactions. It gives a detailed information about each and every transaction. In spite of having many advantages, the special journal has a few disadvantages which should be taken care of otherwise the utility of this accounting technique will go in vain. Nowadays, companies are more interested in purchasing accounting s…
Recommended Articles
- This is a guide to Special Journal. Here we discuss the types and examples of a special journal along with advantages and disadvantages. You may also look at the following articles to learn more – 1. Features of Primavera Capital 2. Examples of Revenue Expenditure 3. General Journal vs General Ledger 4. Advantages and Disadvantage of Unadjusted Trial Balance
Special Journals: Definition
Special Journals: Explanation
- Most of the firm’s transactions can be classified into four groups. These groups, as well as the special journal used to record the appropriate transactions, are shown below: In small businesses, where transactions occur infrequently, each transaction is recorded in a general journaland then posted to the related accountsin the general ledger. A single journal is satisfactory for small bus…
Types of Special Journals
- The number of special journals used by a business concern depends upon the size and needs of a particular enterprise. We shall discuss six commonly used special journals. These are: 1. Purchases journal 2. Purchases returns and allowances journal 3. Sales journal 4. Sales returns and allowances journal 5. Cash receipt journal 6. Cash payment journa...
Advantages of Special Journals
- Maintaining special journals for repetitive transactions offers many advantages to business organizations, such as:
Internal Control and Special Journals
- Separation of duties is an integral aspect of internal control. If possible, different individuals should record transactions in each of the special journals. Depending on the size and the complexity of the accounting department, a total separation of duties may not be possible. However, not all accounting personnel should have access to the general journal. This journal sh…
General Journal Definition
- A general journal is a file of shortly listed every single journal for transactions that don’t logically belong in one among the special journals. The general journal is one of the various types of special journals. There could be countless entries in previous months; a general journal should help you in finding a specific one from all easily. Transactions area unit records of a transaction …
Special Account Journals Definition
- It’s generally for highly developed financial firms who have made tons of similar transactions daily. When a firm has so many similar transactions that are similar to a name as well then the company uses special account journals. Into special account journal a journalist input every single data of all transaction so that, he/she can easily mark a specific transaction easily. In the specia…
Types of Special Journals
- The common four types of special journals are discussed below: 1. Sales journal, 2. Purchases Journal, 3. Cash Receipts journal, 4. Cash Payments Journal.