The financial accounting term special journals refers to a series of dedicated documents used by smaller businesses to chronologically record transactions before posting to the general ledger. Typically, these special journals include the following categories: cash receipts, credit sales, purchases on account, and cash payments.
While larger companies will rely on sophisticated accounting applications, smaller businesses may still use physical journals to record transactions prior to posting to the company's accounting ledgers.
Journal entries are chronological lists of debits and credits to accounts, along with a description of the transaction. Each entry in a journal is comprised of four parts:
Specialized journals provide businesses with more granularity than a general journal, and typically consist of two broad categories of sales and expenses. Within these two categories, a company might utilize the following special journals:
Journal entries are eventually posted to the general ledger as part of the accounting cycle.
On July 1st, 20XX, Company A purchases $250,000 in transformers from its supplier Company XYZ, payable in 60 days. The following entry would be made in Company A's credit sales journal.
|Date||Account Description||Account Number||Debit||Credit|
|Purchase of $250,000 in transformers from Company XYZ, payable in 60 days.|