Expanding the Journal - allowances would be recorded in the general journal So would sales returns and allowances Similarly correcting adjusting and

Expanding the Journal—Special Journals So far you have learned to journalize transactions in a two-column general journal and post each entry to the general ledger. This procedure is satisfactory in only the very smallest companies. To expedite journalizing and posting, most companies use special journals in addition to the general journal . A special journal is used to record similar types of transactions. Examples would be all sales of merchandise on account, or all cash receipts. The special journals a company uses depends largely on the types of transactions that occur frequently. Most merchandising enterprises use the journals shown in If a transaction cannot be recorded in a special journal, it is recorded in the general journal. For example, if you had special journals only for the four types of transactions shown in Illustration G-4, purchase returns and

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Unformatted text preview: allowances would be recorded in the general journal. So would sales returns and allowances. Similarly, correcting , adjusting , and closing entries are recorded in the general journal . Other types of special journals may sometimes be used in some situations. For example, when sales returns and allowances are frequent, special journals may be used to record these transactions. Special journals permit greater division of labor because several people can record entries in different journals at the same time. For example, one employee may journalize all cash receipts, and another may journalize all credit sales. Also, the use of special journals reduces the time needed to complete the posting process . With special journals, some accounts may be posted monthly, instead of daily, as will be illustrated later in the chapter....
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