Quick Answer: How Do You Record Sales Returns And Allowances In A Company That Uses Special Journals?

What are the 4 commonly used special journals?

Special journals are designed as a simple way to record the most frequently occurring transactions.

There are four types of Special Journals that are frequently used by merchandising businesses: Sales journals, Cash receipts journals, Purchases journals, and Cash payments journals..

What types of transactions are recorded in each of the special journals?

Special JournalsTypes and Purposes of Special JournalsJournal NameJournal PurposeAccount(s) DebitedSales JournalSales on creditAccounts Receivable, Cost of Goods SoldPurchases JournalPurchases on creditInventoryCash Disbursements JournalPaying cashCould be: Accounts Payable, or other accounts2 more rows

What are the 5 special journals?

Remember, we have 5 special journals:a sales journal to record ALL CREDIT SALES.a purchases journal to record ALL CREDIT PURCHASES.a cash receipts journal to record ALL CASH RECEIPTS.a cash disbursements journal to record ALL CASH PAYMENTS; and.More items…

What are the two types of journal?

Intermediate Accounting For Dummies Accountants call journals the “books of original entry” because no transactions get into the accounting records without being entered into a journal first. Two basic types of journals exist: general and special.

What are the two major types of books of accounts?

Next Lesson: Cash Book There are two main books of accounts, Journal and Ledger. Journal used to record the economic transaction chronologically. Ledger used to classifying economic activities according to nature.

What is journal example?

A daily newspaper. … The definition of journal is a diary you keep of daily events or of your thoughts or a publication dealing with a specific industry or field. An example of a journal is a diary in which you write about what happens to you and what you are thinking.

What is the difference between journal and ledger?

The journal is the first step of the accounting cycle because all transactions are analyzed and recorded as journal entries. The ledger is an extension of the journal where journal entries are marked by the company and its general ledger account based on which of the financial statements the company has prepared.

How do you record your cash sales and other money received in your business?

Record the cash receipt transaction Using your sales receipts, record each cash transaction in your cash receipts journal. Do not record the sales tax you collected in the cash receipts journal. You must record this in the sales journal instead.

What is the purpose of a special journal?

Definition of a Special Journal A special journal (also known as a specialized journal) is useful in a manual accounting or bookkeeping system to reduce the tedious task of recording both the debit and credit general ledger account names and amounts in a general journal.

What are basic journal entries?

In double-entry bookkeeping, simple journal entries are types of accounting entries that debit one account and credit the corresponding account. A simple entry does not deal with more than two accounts. Instead, it simply increases one account and decreases the matching account.

What are 4 types of transactions recorded in the cash receipts journal?

Cash Receipts JournalTypes of Transactions Recorded:Cash product sales / fees.Cash collected on customer accounts.Any other receipt (source) of cash.

What are types of journal entries?

Types of Journal in AccountingPurchase journal.Sales journal.Cash receipts journal.Cash payment/disbursement journal.Purchase return journal.Sales return journal.Journal proper/General journal.