Effects of Special Journals

Effects of Special Journals - The general journal has...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Effects of Special Journals on General Journal Special journals for sales, purchases, and cash substantially reduce the number of entries that are made in the general journal. Only transactions that cannot be entered in a special journal are recorded in the general journal. For example, the general journal may be used to record such transactions as granting of credit to a customer for a sales return or allowance, granting of credit from a supplier for purchases returned, acceptance of a note receivable from a customer, and purchase of equipment by issuing a note payable. Also, correcting, adjusting, and closing entries are made in the general journal.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: The general journal has columns for date, account title and explanation, reference, and debit and credit amounts. When control and subsidiary accounts are not involved, the procedures for journalizing and posting of transactions are the same as those described in earlier chapters. When control and subsidiary accounts are involved, two changes from the earlier procedures are required: 1. In journalizing , both the control and the subsidiary accounts must be identified. 2. In posting , there must be a dual posting : once to the control account and once to the subsidiary account....
View Full Document

Ask a homework question - tutors are online