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
Famous quotes containing the words special and/or journal:
“The books may say that nine-month-olds crawl, say their first words, and are afraid of strangers. Your exuberantly concrete and special nine-month-old hasn’t read them. She may be walking already, not saying a word and smiling gleefully at every stranger she sees. . . . You can support her best by helping her learn what she’s trying to learn, not what the books say a typical child ought to be learning.”
—Amy Laura Dombro (20th century)
“Unfortunately, many things have been omitted which should have been recorded in our journal; for though we made it a rule to set down all our experiences therein, yet such a resolution is very hard to keep, for the important experience rarely allows us to remember such obligations, and so indifferent things get recorded, while that is frequently neglected. It is not easy to write in a journal what interests us at any time, because to write it is not what interests us.”
—Henry David Thoreau (1817–1862)