Special journals

Definition

Special journals are designed to record specific types of repetitive transactions in accounting. They help streamline the recording process and improve accuracy.

5 Must Know Facts For Your Next Test

1. Common types of special journals include sales journals, purchases journals, cash receipts journals, and cash disbursements journals.
2. Special journals reduce the workload on the general ledger by summarizing frequent transactions.
3. They enhance efficiency by allowing multiple similar transactions to be recorded in one place.
4. Using special journals can help organizations maintain more organized financial records.
5. Transactions recorded in special journals are periodically posted to subsidiary ledgers and the general ledger.

Review Questions

• What is the primary purpose of using special journals in accounting?
• Name at least two types of special journals commonly used in financial accounting.
• How do special journals contribute to improving accuracy and efficiency in recording transactions?

Related terms

General Ledger:

The main accounting record where all financial transactions are summarized.

Subsidiary Ledger:

A detailed ledger that provides information for a specific account within the general ledger.

Posting:

The process of transferring information from journal entries to individual accounts in the general or subsidiary ledgers.