Special Journals

Special Journals - accounts and have a consistent...

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Special Journals Entering transactions in the general journal and posting them to the correct general ledger accounts  is time consuming. In the general journal, a simple transaction requires three lines—two to list the  accounts and one to describe the transaction. The transaction must then be posted to each general  ledger account. If the transaction affects a control account, the posting must be done twice—once to  the subsidiary ledger account and once to the controlling general ledger account. To speed up this  process, companies use special journals to record repetitive transactions that affect the same set of 
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Unformatted text preview: accounts and have a consistent description. Such transactions can be documented on one line in a special journal. Then, instead of separately posting individual entries, each column's total is posted at the end of the accounting period. Although companies create special journals for other types of repetitive transactions, almost all merchandising companies use special journals for sales, purchases, cash receipts, and cash disbursements....
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