What Are Special Journals?

Special Journals: Definition 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. Special Journals: Explanation Most of the firm’s transactions can be classified into four groups. These groups, as well as the special journal used … Read more

Purchases Journal

Purchases Journal: Definition A purchases journal is a special journal used to record any merchandise purchased on account. The entries in this journal are made based on the invoice received from the supplier on the purchase date. Other names used for the purchases journal are the purchases book, purchases day book, and the credit purchases … 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

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 receipts journal. Sales Journal: Explanation Just like the purchases journal, only credit sales are recorded when preparing a sales journal. Cash sales are recorded in … 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 Receipts Journal

Cash Receipts Journal: Definition A cash receipts journal is a special journal used to record cash received by a business from any source. The major sources of cash receipt in a business include: Investment of capital by the proprietor or owner Cash sales Sale of an asset for cash Collection from customers Collection of interest, … Read more

Cash Payment or Cash Disbursement Journal

Cash Payment Journal: Definition A cash payment journal, also known as a cash disbursement journal, is used to record all cash payments (or disbursements) made by the business. Examples of major cash payments in a business that may be recorded in the cash payment journal are: Payments to creditors Cash purchases of merchandise, supplies, equipment, … 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