Four Different Special Journals Essay Example
Four Different Special Journals Essay Example

Four Different Special Journals Essay Example

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  • Pages: 1 (240 words)
  • Published: April 8, 2017
  • Type: Essay
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Special journals such as the sales journal, purchase journal, cash receipt journal, and cash payment journal are used to record recurring data in accounting. Instead of recording transactions of the same nature repeatedly through individual entries, special journals allow for their consolidation and streamlined ledger posting. This method helps reduce repetitive work, especially when employing manual accounting systems. Journal entries continue to serve as an essential means of recording transactions in accounting.

Special journals are utilized for various transactions to be tracked. The sales journal is used to record sales, while the purchase journal records credit purchases. All cash receipts and payments are recorded in the cash receipts and payments journal. Moreover, a subsidiary ledger maintains distinct records for customers and s

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uppliers by keeping their individual accounts within this ledger.

Control accounts play a crucial role in maintaining clarity regarding customer debts and supplier payments. These accounts track the total amount in each individual account, allowing for easy determination of the overall sum owed by customers and payable to suppliers. For further efficiency, general ledger control accounts can be utilized with subsidiary ledger accounts. Specifically, control accounts for account receivable and account payable record credit sales and purchases, with transactional details also logged in subsidiary ledger accounts. This dual system helps ensure accurate reconciliation between both ledgers.

Another employee maintaining the subsidiary ledger compared to the one maintaining the general ledger can serve as a beneficial form of internal control.

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