Special Journals
🎯 Learning Objectives
- Understand the purpose and benefits of special journals in accounting systems
- Identify the five types of special journals and their specific purposes
- Distinguish between transactions recorded in special journals versus the general journal
- Explain how special journals improve efficiency in recording recurring transactions
- Describe the posting process from special journals to ledgers
- Apply the appropriate journal for various business transactions
📚 Background & Principles
Special journals are specialized accounting records designed to efficiently handle high-volume, repetitive transaction types. Instead of recording every transaction in the general journal, businesses use these "express lanes" to streamline their accounting processes and improve accuracy.
🔑 Key Concepts
Records all credit sales of merchandise. Each entry only requires one amount column since debit (AR) and credit (Sales) are always equal.
Records all transactions where cash is received. Includes multiple debit and credit columns for different cash receipt sources.
Records all credit purchases of merchandise and supplies. Mirrors the structure of the sales journal.
Records all transactions where cash is paid out. The mirror image of the cash receipts journal.
The journal of "last resort" for adjusting entries, closing entries, and non-routine transactions not covered by special journals.
Special journals often feed information to subsidiary ledgers (like accounts receivable subsidiary) for detailed tracking.
🔍 Deep Dive
Explore special journals at different levels of depth:
🟢 Foundational Level
Understanding the basic concept of special journals.
The Supermarket Analogy
Express Lanes vs. Customer Service
Imagine a busy supermarket with different checkout options:
Handles unusual situations—price adjustments, returns, complaints. It's slow but handles anything.
Each lane handles ONE specific type of transaction quickly and efficiently.
The Five Journals
| Journal | What It Handles | When to Use |
|---|---|---|
| Sales Journal | Credit sales of merchandise | Only sales on account |
| Cash Receipts | Any cash coming in | Cash sales, customer payments |
| Purchases Journal | Credit purchases | Buying inventory on account |
| Cash Payments | Any cash going out | Bill payments, expenses |
| General Journal | Everything else | Adjustments, unusual items |
🟡 Standard Level
Understanding journal structure and posting procedures.
Sales Journal Efficiency
Why Only One Amount Column?
In the sales journal, every entry follows the same pattern:
Debit: Accounts Receivable | Credit: Sales Revenue
Since these always balance, we only record the amount ONCE!
Post the column TOTAL to the general ledger: $XX,XXX to AR (debit) and $XX,XXX to Sales (credit)
Cash Receipts Journal Complexity
Multiple Columns for Multiple Sources
Cash can come from various sources, so the journal has multiple columns:
| Column | Type | Posted When |
|---|---|---|
| Cash Dr. | Debit (total) | Month-end |
| Sales Discounts Dr. | Debit (total) | Month-end |
| Accounts Receivable Cr. | Credit (individual) | Daily |
| Sales Revenue Cr. | Credit (total) | Month-end |
| Other Accounts Cr. | Credit (individual) | Daily |
🔴 Advanced Level
Understanding posting controls and system integration.
The Posting Process
Individual vs. Total Posting
Account names in the "Account Debited" or "Accounts Receivable Cr." columns get posted to subsidiary ledgers immediately.
Column totals get posted to control accounts in the general ledger: AR Control, Sales, Cash, etc.
Subsidiary ledger total MUST equal the control account balance.
Special Journal Selection Criteria
When to Use Each Journal:
Transaction = Sale of merchandise AND Customer charged (not cash)
Transaction involves receiving CASH (any source)
Transaction doesn't fit any special journal pattern
🎨 Interactive: Purchases Journal Clerk
You are the accounting clerk! Drag the correct information from the invoice into the appropriate columns in the Purchases Journal to record the transaction.
Incoming Invoice:
Purchases Journal
| Date | Account Credited (Supplier) | Invoice No. | Amount (Dr. Inventory / Cr. A/P) |
|---|---|---|---|
🚫 Common Misconceptions & Professional Tips
✅ Reality: The Sales Journal is ONLY for credit sales. Cash sales are recorded in the Cash Receipts Journal because they involve a cash debit, not an accounts receivable debit.
✅ Reality: Only the "individual" columns (like customer names in AR) get posted daily. Column totals are posted at month-end, which is the whole point of special journals!
✅ Reality: The Purchases Journal records only credit purchases. Cash purchases are recorded in the Cash Payments Journal.
🧠 Memory Aids & Quick Reference
Got Cash In? → Cash Receipts Journal
Got Cash Out? → Cash Payments Journal
Credit Sale? → Sales Journal
Credit Purchase? → Purchases Journal
Everything Else? → General Journal
One amount column. Post total to AR and Sales at month-end. Individual AR posted daily.
Multiple columns. Cash Dr. column always present. Post totals monthly, individuals daily.
Mirror of Sales Journal. Records credit purchases of merchandise and supplies.
Mirror of Cash Receipts. Records all cash outflows. Always has Cash Cr. column.
📖 Glossary
An accounting journal designed to record a specific type of transaction efficiently, with columnar sections for common accounts.
The journal of original entry for transactions not recorded in special journals, including adjusting and closing entries.
Special journal for recording credit sales of merchandise. Contains one amount column since debits equal credits.
Special journal for recording all transactions involving the receipt of cash, regardless of source.
Special journal for recording credit purchases of merchandise and supplies from vendors.
Special journal for recording all transactions involving the payment of cash to others.
A general ledger account that summarizes the total balance of a subsidiary ledger.
A group of accounts that provides detailed support for a single control account in the general ledger.
🎯 Knowledge Check: Special Journals
Test your understanding of special journals:
Question 1: Which journal is used for credit sales of merchandise?
Question 2: When is the total of the Sales Journal column posted to the general ledger?
Question 3: Where is a cash sale recorded?
Question 4: Which transaction would be recorded in the General Journal?
Question 5: Why does the Sales Journal only need one amount column?