BOOKKEEPPING

A specialty journal records special events or transactions that are related to the particular
journal itself. There are mainly four kinds of specialty journals:

 Sales journal
 Cash receipts journal
 Purchases journal
 Cash disbursements journal

The company can have more specialty journals depending on its needs and type of
transactions but the above four mentioned journals contain the bulk of accounting
activities.

GENERAL JOURNAL
All other transactions which are not entered in a specialty journal are accounted in
a General Journal. This can have the following types of transactions:

 Accounts receivables
 Accounts payable
 Equipment
 Accumulated depreciation
 Expenses
 Interest income and expenses etc.

CASH DISBURSEMENT JOURNAL

The cash disbursements journal (also known as cash payments journal) is a special
journal that is used by a business to manage all cash outflows. In other words, a cash
disbursements journal is used to record any transaction that includes a credit to cash. All
cash inflows are recorded in another journal known as cash receipts journal.

The usual examples of cash outflows in a business are given below:

 Payment of cash for cash purchases.

 Payment of cash for previous credit purchases i.,e. payment to accounts payable or
creditors
 Payment of cash for various expenses like rent, advertisement, carriage, wages and
salaries etc.
 Payment of cash for the purchase of a tangible or intangible asset.
 Cash refunds for goods returned by customers.
 Payment of cash for donations, charities and Zakat etc.
 CASH RECEIPTS JOURNAL

A cash receipts journal is a subsidiary ledger in which cash sales are recorded. This journal is
used to offload transaction volume from the general ledger, where it might otherwise clutter up
the general ledger. The journal contains the following fields:

 Date

 Customer name

 Identification of cash receipt, which may be any of the following:

 Check number paid

 Customer name

 Invoice paid

 Debit and credit columns to record both sides of each entry; the normal entry is a debit to cash
and a credit to sales

A Cash receipts journal is a specialized accounting journal and it is referred to as the main
entry book used in an accounting system to keep track of the sales of items when cash is
received, by crediting sales and debiting cash and transactions related to receipts. Sales on
account are booked instead in the sales journal.[1]
Cash receipts journal is considered as the separate part of Cash account/cash book as it
records the cash inflow of the business. The source document of this prime entry book
is Receipt.