This system helps keeps accurate and organized records of every type of transaction, so they can be reviewed later in the accounting period. If special journals weren’t used to organize transactions, everything would be recorded in the general journal and there would be no way to look at specific types of transaction. The ledger of Accounts receivables will be taken care of and all the payments, if not settled by the customers, will be settled on the given dates. The nature of each company’s transactions determines which columns this journal includes. For example, companies sometimes choose to include separate debit columns for regularly used accounts such as salaries expense, sales commissions expense, or other specific accounts affected by cash disbursements.
If possible, different individuals should record transactions in each of the special journals. In special journals, each transaction is recorded in a single line designed to provide all the necessary information. Therefore, one or more individuals must record the transactions by hand in the appropriate journals. These transactions must then be posted by hand to the appropriate general and subsidiary ledgers. The transactions recorded in a general journal are then summed to carry forward the balances to the general ledger. A special journal can be created and maintained like a general journal.
Special accounting journals
If it is a credit sale (also
known as a sale on account), it is recorded in the sales journal. If it is a credit purchase (also known as a purchase on account),
it is recorded in the purchases journal. Special journals are all accounting journals except for the general journal. These journals are used to record specific types of high-volume information that would otherwise be recorded in and overwhelm the general ledger. The total amounts in these journals are periodically transferred to the general ledger in summary form. Transactions are recorded in special journals in chronological order, making it easier to research transactions.
- Publishing in a general or specialized journal may have different effects on your professional visibility and future research.
- Special journals and general journal are both books of prime entry which are used to record the transactions of a business.
- For example, subsidiary ledgers, such as the accounts receivable ledger, provide data about the aging and collectability of receivables.
Examples of such entries are adjusting entries, closing entries, transferring entries, and correcting entries. The widespread use of microcomputers has enabled even small firms to automate their accounting systems. And while Cognac’s drink may get top billing, the region certainly has more gifts for its visitors.
It’s best to do some preliminary research on any specific guidelines required by the journal you select. Also, check the Guide for Authors of the journal you are considering. A special issue is different from a regular journal issue since it focuses on a specific topic of research that usually has a broad appeal. The special issue still falls within the scope of the research journal, and is an outstanding way to explore a particular theme, review previously unaddressed issues, and even propose or develop brand new approaches to the topic. This journal should record non-routine transactions, and many of these transactions should be approved by the head of the accounting department or by someone with similar authority. One journal records similar transactions, which simplifies future references to any of them.
Purpose and nature of transactions recorded
Likewise, external users want this data (balance sheet, income statement, and statement of cash flows) to make decisions such as whether or not to extend credit to Gearhead. The journal may invite you as an expert in your specific field of research. If you are an acknowledged expert on a particular theme with a wide network of potential authors and reviewers, don’t be surprised if an editor approaches you to suggest your leading a new special issue on their journal. If you are interested in proposing a special issue, first decide on a topic or theme, and then select a journal.
As it is for specific accounts, a business can add or delete any number of columns. A complementary sub-journal to the sales journal can be created for recording sales returns or allowances offered. It would help a business understand the effectiveness of its discounts and the causes of canceled sales.
2 Describe and Explain the Purpose of Special Journals and Their Importance to Stakeholders
It’s not unusual for articles in special issues to be referenced more often than regular issue articles. In fact, special issue articles are cited up to 20% more in the first two years than articles amending your taxes be careful with irs that are published in standard journal issues. Additionally, special issues are typically promoted through social media platforms, further increasing your visibility and potential audience.
Shaun Conrad is a Certified Public Accountant and CPA exam expert with a passion for teaching. After almost a decade of experience in public accounting, he created MyAccountingCourse.com to help people learn accounting & finance, pass the CPA exam, and start their career. You can submit a proposal for a special issue to a journal following our instructions – the senior editor will approve or reject it after consulting with the Editorial Board. If accepted, you (and any co-guest editors) will be responsible for developing the issue and leading the editorial review process. It’s critical for your career to ensure article publication, and the easiest way to do that is to take advantage of Elsevier’s Language Editing Express services.
What is the Purpose of a Special Journal?
However, a specialty journal contains more columns usually than a general journal. Both take similar approaches to recording bookkeeping transactions chronologically. It means a general journal acts as a primary bookkeeping document that provides essential accounting data for the preparation of the ledger book. That in turn, offers necessary data for the preparation of financial statements.
Similarly, any details can be recorded in a general journal, however, most businesses avoid it for complexity. Both types of journals act as the primary source documents for the general ledger. A general ledger summarizes all bookkeeping accounts maintained by a business. Unlike the general journal, a specialty journal is not a mandatory document for all businesses. It is often created when businesses require special information on specific accounts. While an accrual-based business will have cash journals, a cash-based business won’t have a sales or purchases journal as a cash-based business only recognizes transactions when cash changes hands.
For example, the entries in the sales journal to the right appear below in a multi‐column sales journal that tracks hardware sales, plumbing sales, wire sales, and sales tax payable. Individual entries are still posted daily to the accounts receivable subsidiary ledger accounts, and each column total is posted at the end of the accounting period to the appropriate general ledger account. This journal entry would be followed by a journal entry for
every other transaction the company had for the remainder of the
period. ”
To answer this question, the company would need to review all of
the pages of the general journal for nearly an entire month to find
all of the sales transactions relating to Mr. Smith. And if Mr.
Smith said, “I thought I paid part of that two weeks ago,” the
company would have to go through the general journal to find all
payment entries for Mr. Smith.
Is it good to publish in special issues?
It normally includes entries for adjustments like accruals and prepayments, correction of errors, bad and doubtful debts, depreciation, writing down of inventory and sale and purchase of non-current assets. All the transactions in general journal are recorded in form of double entry. General journal also acts as authorization because all the entries in the journal will be prepared or reviewed by the financial accountant.
Examples of special journals are the cash receipts journal, cash disbursements journal, payroll journal, purchases journal, and sales journal. This special journal is used to record purchases made on credit with vendors. By only recording credit purchases in this journal, accountants and bookkeepers can use this as a record of all the credit purchases during a period.
If the transaction does not involve cash, it will be recorded in one of the other special journals. If it is a credit sale (also known as a sale on account), it is recorded in the sales journal. If it is a credit purchase (also known as a purchase on account), it is recorded in the purchases journal.
Financial Accounting
In short, a special journal reduces the workload for the accountant and spreads the task into several sub-journals rather than recording all transactions into a single general journal. In special journal all the transactions are accumulated and then the total is periodically posted to the ledgers whereas in general journal the transactions are not accumulated and are posted individually to the ledgers. Let us return to the sales journal, shown in Figure 7.17 that includes information about Baker Co. as well as other companies with whom the company does business. Using the reference information, if anyone had a question about this entry, he or she would go to the sales journal, page 26, transactions #45321 and #45324.