What is the purpose of special journals in accounting?

What are special journals – Definition

Special journals are individual journals used to record a specific transaction in that special journal. For example to record all sales transaction the organization can maintain a sales journal and for all purchase transactions a purchase journal. Similarly, cash receipt and payment journal can be used to maintain the record of all transactions made with cash.

On the other hand, the general journal is used to record miscellaneous transactions which do not fit in any of the special journal maintained by the organization. Also, the general journal is used to record non-routine transactions like a sale of a tangible asset, a sale of property, bad debts, depreciation etc.

Examples

Cash Receipt Journal

The following image is given to show you how a special journal (Cash receipt journal) looks like in practice.

cash receipt journal

The cash receipt journal lists all the cash movements of a company in the form of a journal.

Purchase Journal

A purchase journal is an example of special journals in accounting that records orders made by a company on terms to pay later. It does not record cash purchases for inventory. Purchase journal records the type of purchase, quantity of products and price of products involve in the transaction. Here is how a purchase journal looks like in practice.

Purchase Journal

DateAccount CreditedInvoice No.P.RAmount ($)
Dec. 2B & Co.11250400
Dec. 08Z & Co.118553,200
Dec. 15BMW Deals Co.125606,550
Dec. 25S & Co.14444700
Dec. 31Total$ 10,850

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