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What is a special (subsidiary) Journal? Name the important special journals. |
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Answer» The journals in which transactions of similar nature only are recorded may be termed as special journals or daybooks. The division of original entry into different Daybook is called the subdivision of the journal. The important special journals are: 1. Cash Book – for recording all cash transactions. 2. Purchases Day Book – for recording all the credit purchases of goods. 3. Sales Day Book – for recording all the credit sale of goods. 4. Purchase Return Book – for recording goods returned to suppliers. 5. Sales Return Book – for recording goods returned by customers. 6. Bill Receivable Book – for recording bill received from customers. 7. Bill Payable Book – for recording bills given to suppliers. 8. Journal Proper – If specialised journals are kept the journal is used only for recording those transactions that cannot be recorded in other journals. In this case the journal is known as Journal Proper or General Journal. |
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