BA 105 SPECIAL JOURNALS

Reference: Fundamentals of Financial Accounting and Reporting by Win Ballada

SPECIAL JOURNALS
are books of original entry other than the general journal. They are designed for
recording specific types of transactions of a similar nature.

JOURNAL SPECIFIC TRANSACTION POSTING CODES

RECORDED

Sales Journal Sales of merchandise on SJ

account

Cash Receipts Journal Receipts of cash CRJ

Purchase Journal Credit purchases of PJ

merchandise and other items

Cash Payments Journal Payments of cash CPJ

General Journal Entries that do not fit in the GJ

other journals

Cash sales are usually recorded in the cash receipts journal rather than in the sales journal
because cash is best controlled when all routine cash receipts are recorded in one journal.
Similarly, an entity can increase control over cash disbursements by recording cash purchases
of merchandise or other items in the cash disbursements journal rather than in the purchases
journal.

RECORDING TRANSACTIONS IN SALES AND CASH RECEIPTS JOURNALS

Illustrative Problem

TRANSACTIONS

April10 Sold merchandise on account to R. Yuuki, P32,000. Invoice No. 333;

3/10; n/30

April 12 Sold merchandise on account to B. Cruz, P62,000. Invoice No. 334;

3/10; n/30

April 15 Sold P46,000 merchandise for cash.

April 19 Received payment from R. Yuuki less discounts

April 29 B. Cruz returned P11,000 of merchandise from the sale in April 12

April 30 The owner invested additional P40,000 cash.

BA 105 SPECIAL JOURNALS
Reference: Fundamentals of Financial Accounting and Reporting by Win Ballada
SALES JOURNAL

DATE INVOICE NO. ACCOUNT POST ACCOUNTS SALES

DEBITED REFERENCE RECEIVABLE
(DR) (CR)

April 10 No. 333 R. Yuuki 32,000 32,000

12 No. 334 B. Cruz 62,000 62,000

TOTALS 94,000 94,000

CASH RECEIPTS JOURNAL

DATE O.R No. DESCRIP DEBITS CREDITS

TION

CASH SALES ACCOUNTS SALES OTHER ACCOUNTS

DISCOUNT RECEIVABLE
S

ACCOUNT P AMOUNT
TITLE R

APRIL15 001 Cash 46,000 46,000

Sales

19 002 Collecti 31,040 960 32,000

on - R.
Yuuki

30 003 Investm 40,000 Owner, 40,000

ent Capital

TOTALS 117,040 960 32,000 46,000

note: April 29 transaction will be recorded in the General Journal together with write-offs of
uncollectible accounts; and certain non-cash transactions involving notes receivable and
notes payable

PURCHASE JOURNAL

Is designed to record purchases of MERCHANDISE, SUPPLIES and OTHER ASSETS on account.

● The primary source document used as the basis for the entries is the receiving report
(RR)
● The purchase journal has special columns for debits to purchases, office supplies, and
store supplies, as well as for credits to accounts payable.
BA 105 SPECIAL JOURNALS
Reference: Fundamentals of Financial Accounting and Reporting by Win Ballada
● A column is also provided for debits to accounts for which no special column is
available

CASH PAYMENTS JOURNAL

● All cash payments are recorded in a cash disbursements journal.
● Cash purchases are recorded in the cash disbursements journal.
● Cash disbursements journal has special columns for credits to cash and purchases
discounts, and for debits to accounts payable and purchases.

GENERAL JOURNAL
Transactions that cannot be recorded appropriately in a special journal are recorded in the
general journal.

Examples include merchandise returns; write-offs of uncollectible accounts; and certain

non-cash transactions involving notes receivable and notes payable.

Year-end adjusting entries are also recorded in the general journal. Adjusting journal entries
are entries used to update the accounts prior to the preparation of financial statements
because they affect more than one accounting period. The following are the accounts
subjected to adjustments:
1. Prepayments
2. Unearned or Deferred Income
3. Accrued Expenses
4. Accrued Income
5. Bad Debts/Doubtful Accounts
6. Depreciation

POSTING is the process of transferring the information found in the journal into the book of
final entry known as the general ledger (GL).
● The general ledger is a group of accounts used by the company.
● The general ledger summarizes the increases or decreases of individual accounts which
are called “control account”. The balance of the control account should equal the
total of the individual account balances in the subsidiary ledger.
● A subsidiary Ledger (SL) is a detailed record of transactions with individual customers
or suppliers. Entries into the SL will come from either the individual entries in the
journal or from the sourcedocuments.
● Debits in the journals are correspondingly posted as debits in the GL, and credits in
the journals are likewise posted as credits in the GL.

Steps in posting to the GL:

1. From the journal, copy the period covered by the journal to the general ledger, for ex.
May 1-31, 2022.
2. Under the journal reference (J.R.) column of the general ledger, copy the page
number of the journal.
BA 105 SPECIAL JOURNALS
Reference: Fundamentals of Financial Accounting and Reporting by Win Ballada
3. Under the debit column in the GL, transfer the total of the debit amounts from the
journal. Under the credit column in the GL transfer the total of the credit amounts
from the journal.

ACTIVITY/EXERCISE 1

Indicate in which of the five journals each transaction must be recorded. Write the letter
only.

A. SALES JOURNAL
B. CASH RECEIPTS JOURNAL
C. PURCHASE JOURNAL
D. CASH PAYMENTS JOURNAL
E. GENERAL JOURNAL

___________ 1. Sold merchandise on account.

___________ 2. Paid cash for rent.

___________ 3. Purchased merchandise on account.

___________ 4. Returned merchandise on account.

___________ 5. Purchased a computer desktop on account.

___________ 6. Issued a promissory note to settle an account.

___________ 7. Sold merchandise on account.

___________ 8. Received a note in settlement of a customer's account.

___________ 9. Bought goods. Terms: 2/10, n/30

___________ 10. Paid salaries

___________ 11. Purchased merchandise, COD.

___________ 12. Paid telephone expense

___________ 13. Purchased supplies on account.

___________ 14. Bought goods on account.

___________ 15. Purchased merchandise. Terms: 2/10, n/30

___________ 16. The owner made additional investment in the business

___________ 17. Purchased equipment for cash.

___________ 18. Bought supplies on credit

BA 105 SPECIAL JOURNALS
Reference: Fundamentals of Financial Accounting and Reporting by Win Ballada

___________ 19. Paid an account in full

___________ 20. Owner withdrew cash for personal use.

___________ 21. Paid workers’ salaries.

___________ 22. Paid utilities for the month.

___________ 23. Sold merchandise on account.

___________ 24. Received the bill from Dagupan Electric Corporation

___________ 25. Received cash for goods sold.