Special Journal
Special Journals are designed to facilitate the process of journalizing and posting transactions. They are used for the most frequent transactions in a business. For example, in merchandising businesses, companies acquire merchandise from vendors, and then in turn sell the merchandise to individuals or other businesses. Sales and purchases are the most common transactions for the merchandising businesses. A business such as a retail store will record the following transactions many times a day for sales on account and cash sales.
| Description | Debit | Credit |
|---|---|---|
| Accounts Receivable | XXX | |
| Sales | XXX | |
| Sales Tax Payable | XXX |
| Description | Debit | Credit |
|---|---|---|
| Cash | XXX | |
| Sales | XXX | |
| Sales Tax Payable | XXX |
In order to save time for journalizing the entries, and posting the entries to the general ledgers and subledgers, Special Journals are used instead. An accountant can be specialized in a type of journal entry and several accountants can work each on 1 or more different types of journal entries only thereby using a better division of labour.
Read more about Special Journal: Types of Special Journals, Source Documents, Format of Special Journals
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