Special Journals
Bookkeeping Ingredients
A Bookkeeping Journal is a chronological record where a business logs its daily financial transactions before they are transferred to the general ledger. It is traditionally known as the "book of original entry".
Types of Journals:
- The Cash Receipts Journal is a special journal that is used to record all receipts of cash.
- The Sales Journal is a special journal where sales of services and merchandise made on account (business's customer is allowed to charge purchases) are recorded.
- The Cash Disbursements Journal is a special journal that is used to record all cash that is paid out by a business except for payroll.
- The Purchases Journal is a special journal that is used to record all purchases and various expenses and other charges from suppliers that a business has an open account with (supplier allows the business to charge purchases).
- The Sales Return & Allowances Journal is a special journal that is used to record the returns and allowances of merchandise sold on account.
- The Purchase Returns & Allowances Journal is a special journal that is used to record the returns and allowances of merchandise purchased on account.
- The Payroll Journal is a special journal that is used to record and summarize salaries and wages paid to employees and the deductions for taxes and other authorized employee withholding amounts (not discussed in this tutorial).
- The General Journal is the record used to record unusual or infrequent types of transactions. Type of entries normally made in the general journal are depreciation entries, correcting entries, and adjusting and closing entries.
Special Journals