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:
“When we walk the streets at night in safety, it does not strike us that this might be otherwise. This habit of feeling safe has become second nature, and we do not reflect on just how this is due solely to the working of special institutions. Commonplace thinking often has the impression that force holds the state together, but in fact its only bond is the fundamental sense of order which everybody possesses.”
—Georg Wilhelm Friedrich Hegel (1770–1831)
“To have some account of my thoughts, manners, acquaintance and actions, when the hour arrives in which time is more nimble than memory, is the reason which induces me to keep a journal: a journal in which I must confess my every thought, must open my whole heart!”
—Frances Burney (1752–1840)