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Types of Journals

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Journals can be mainly classified in two.They are General Journal and special journal.

General Journal

It is the journal at which all kinds of transactions are recorded.or in other words all transactions not recorded in the special journals.

Special Journal

Special journals are the classifications of journals. Transactions with similar nature are recorded in journal book is called Special Journal.

Example of Special Journals

  • Purchase journal: A journal where all purchase transactions are recorded.
  • Sales Journal: Sales journals are the records of sales on credit or service rendered on credit.
  • Cash receipt journal:All cash receipt transactions are recorded in this journal book.
  • Cash disbursement Journal /Cash payment journal: It is the journal at which all cash payments are recorded.
  • Return Inwards Journal or sales return journal: It is the journal at which all products or inventory returns by the customers are recorded.This is related to a trading & manufacturing business only.
  • Return Outwards Journal or Purchase return journal: It is the journal at which all product returns to the supplier are recorded.It is applicable only to a trading and manufacturing business.

But in today’s Computerized Accounting Environment,found only one journal book called General Journal or Daybook. That too; is not essential, because when entering a transaction, the accounting software automatically posts transactions into Ledger,capable of providing summary in seconds.

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