What are examples of special journals?
Special Journals
| Types and Purposes of Special Journals | ||
|---|---|---|
| Journal Name | Journal Purpose | Account(s) Credited |
| 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 |
What is considered to be a special journal?
Definition: A special journal is any accounting journal in the general journal that is used to record and post transactions of similar types. In other words, it’s a place where similar transactions can be recorded and organized, so bookkeepers and accountants can keep track of different business activities.
Why do companies use special journals?
To speed up this process, companies use special journals to record repetitive transactions that affect the same set of accounts and have a consistent description. Such transactions can be documented on one line in a special journal.
Why do we use special journals in accounting?
These journals are used to record specific types of high-volume information that would otherwise be recorded in and overwhelm the general ledger. Transactions are recorded in special journals in chronological order, making it easier to research transactions.
What are advantages of using 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.
Why are they called special journal?
Furthermore, it can prove impossible for one bookkeeper/accountant to journalize all the transactions of a large business in one journal. To overcome this problem, the journal is split into sub-journals called special journals, which are designed to record transactions of a specific nature.
What are the four commonly used 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.