Special Journals

The General Journal is the record used to record unusual or infrequent

types of transactions. Type of entries normally made in the general journal
are depreciation entries, correcting entries, and adjusting and closing
entries.

The Cash Payments Journal is a special journal that is used to record all
cash that is paid out by a business except for payroll. Columns are set up for
types of transactions that occur frequently enough to warrant a separate
column. Some examples are Accounts Payable (Payments on Purchases and
Services Charged) and Cash Purchases.

The Cash Receipts Journal is a special journal that is used to record all
receipts of cash. Columns are set up that indicate the sources of the cash.
Two of the major sources of cash for a business are Cash Sales and
Collections of Customer Charge Sales. These and other categories that have
a lot of activity (transactions) have their own column.

The Sales Journal is a special journal where sales of services and

merchandise made on account (business's customer is allowed to charge
purchases) are recorded.

The Purchases Journal is a special journal that is used to record all

purchases and various expenses and other charges from suppliers that a
business has an open account with (supplier allows the business to charge
purchases).

The Purchase Returns & Allowances Journal is a special journal that is

used to record the returns and allowances of merchandise purchased on
account.
Instructions:
Select the appropriate Special Journal to record the following transactions:

 SALES JOURNAL
 PURCHASES JOURNAL
 CASH RECEIPTS JOURNAL
 CASH DISBURSEMENT JOURNAL
 GENERAL JOURNAL

1. OWNER INVESTMENT CASH (PERSONAL CHECK) IN HIS /HER BUSINESS.

2. PURCHASE OFFICE FURNITURE WITH A CHECK.
3. SOLD PRODUCT FOR CASH
4. PURCHASED PRODUCT TO RESELL PN 30 DAY OPEN ACCOUNT (CREDIT)
5. SOLD PRODUCT TO A CUSTOMER ON ACCOUNT- 10 DAY PAYMENT TERMS.
6. RECEIVED AN INVOICE WITH 30 DAY TERM FROM SUPPLIER FOR ADVERTISING
7. CHECK WRITTEN TO OWNER FOR PERSONAL LIVING EXPENSES
8. Prepared and mailed out Purchase Order to a products supplier.
9. Received and recorded monthly phone bill with 10-day credit terms.
10. Received and paid (wrote) check for utility bill.
11. Recorded depreciation expense for the period.
12. Issued a debit memo to a supplier for some defective products
returned.
13. Received and recorded invoice with credit terms of 10 days for
gasoline purchases for the period.
14. Received an invoice and wrote check for equipment repairs.
15. Wrote checks to pay employees payroll liability.
16. Purchase of plant for business for cash.
17. Purchase of patents of credit.
18. Purchase of goods on credit.
19. Purchase of goods on credit.
20. Sale of old furniture on credit.
21. Sale of office building on cash.

TRUE OR FALSE

22. Credit purchases of goods are recorded in purchase journal.

23. Credit sales of goods are recorded in Sales journal.
24. Credit purchases of machinery are to be recorded in proper journal.
25. Cash purchases of furniture and fixture are to be recorded in purchase journal.
26. Credit note is the basis of recording purchase returns book (journal).
27. Debit note is the basis of recording sale returns book (journal).
28. Invoice is the basis for recording cash disbursement book (journal).
29. Outward invoice is the basis for recording sales journal book (journal).
30. rare transactions which do not fall within the scope of special journals are recorded in
General journal

fill in the blank: DEBIT OR CREDIT

1. The total of purchases journal is posted to the ______ of purchases account.

2. The total of sales journal is posted to the ______ of sales account.
3. The total of purchases journal is posted to the ______ of purchases returns account
4. The total of sales returns journal is posted to the ______ of sales returns account.
5. The entries in the purchases journal are posted to the ______ of creditors account.
6. The entries in the sales journal are posted to the ______ of debtors account.
7. The entries in the purchases returns journal are posted to the ______ of creditors account.
8. The entries in the sales returns journal are posted to the ______ of debtors account.