What Are Special Journals?

Special Journals – Definition Special journals are those that are designed to handle certain transactions such as cash receipts or sales. As we will see, the use of special journals significantly reduces the amount of time necessary to record transactions and post them to the ledgers. Explanation Most of the firm’s transactions can be classified … Read more

Purchases journal

What is the Purchases journal? – Definition Purchases journal is a special journal that is used to record the merchandise purchased on account. The entries in this journal are made on the basis of the invoice received from the supplier at the time of purchase of merchandise. Other names used for the purchases journal are … Read more

Purchases returns and allowances journal

What is purchases returns and allowances? The refunds and other allowances given by suppliers on merchandise originally purchased for resale is called purchases returns and allowances. Purchase Returns and Allowances Journal When merchandise purchased on account are returned or an allowance is requested, the entry is made in the purchases returns and allowances journal. Any … Read more

Sales journal

What is the Sales Journal? – Definition A sales journal is used to record the merchandise sold on account. Any entry relating to the sale of merchandise for cash is recorded in the cash receipt journal. Explanation Just as the purchases journal, while preparing a sales journal only credit sales are recorded. Cash sales are … Read more

Sales returns and allowances

What is sales returns and allowances? The sales returns and allowances is a contra revenue account with a normal debit balance used to record returns from and allowances to customers. It thus has a debit balance that is opposite the credit balance of the Sales account. What is the sales returns and allowances journal? When … Read more

Cash receipt journal

What is a Cash Receipt Journal? – Definition Cash receipt journal is a special journal that is used for the purpose of recording cash received by a business from any source. The major sources of cash receipt in a business are as follows: Investment of capital by the proprietor/owner Cash sales Sale of an asset … Read more

Cash payment or Cash disbursement journal

What is Cash Payment journal? – Definition Cash payment journal or cash disbursement journal is used to record all cash payments made by the business. or The special journal used to record cash disbursements made by check is called a cash payment journal. The examples of major cash payments in business are: payments to creditors … Read more

Special Journal – MCQs

Take a quick Multiple Choice Questions (MCQs) test about Special Journal. These MCQs can help you to prepare for your exams, interviews and different tests. Just click the “start quiz” button and start special journal MCQs quiz. If you find difficulty in answering these questions, read ‘Special Journal‘ chapter thoroughly from explanation section of the website. … Read more