CHAPTER 10- SPECIAL JOURNALS
LEARNING OBJECTIVES:
At the end of this chapter, the student should be able to:
1. Be knowledgeable in the designs and mechanics of special journal as a system in recording
business transactions and events
2. Be able to record business transactions using their respective special journals
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SPECIAL JOURNALS
A business may encounter large quantities of similar and recurring transactions which may
create congestion and confusion of recorded repeatedly in a single day or a month in the general
journal. In merchandising business, for example, sales transactions occur a thousand times in a day
so it would be unnecessary and impractical to credit the sales account repeatedly. Consequently, a
special journal must be prepared to facilitate efficient and practical recording of similar and
recurring transactions.
KINDS OF SPECIAL JOURNALS
The use of special journals with the inclusion of the two column general journal, several persons
and five at most can do the journals and the general journal as well as the specific type of
transactions for which they are intended for:
Special Journals Journal Symbol Specific Transactions Recorded
1. Sales Journal SJ Sales of merchandise on
account
2. Purchase Journal PJ Purchases of merchandise on
account
3. Cash Receipt Journal CRJ Receipt of cash from all sources
4. Cash Disbursement/ CDJ Payment of cash for any
Payment Journal purpose
5. General Journal GJ All other transactions that do
not fit in the four special
journals
There can only be one original journal. Therefore, these special journals become the books of
original entry. Any transactions recorded in these journals shall not anymore be recorded in the
general journal. Accordingly, if special journals are used, the general journal shall only be used for
entries of other transactions not recorded in the special journals, including adjusting and closing
entries.
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FORMS OF SPECIAL JOURNALS
1. SALES JOURNAL
This is used to record sales transaction on account or on credit
2. CASH RECEIPTS JOURNAL
Used to record transaction resulting from receipts of cash either from the collections of
receivables or from other sources
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3. PURCHASE JOURNAL
Used to record transactions pertaining to purchase of merchandise/ goods on account
4. CASH DISBURSEMENT/ PAYMENT JOURNAL
Used to record transactions pertaining to disbursement of cash either as payment of
account to creditors or payments of expenses
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5. GENERAL JOURNAL
When special journal are used, a general journal must be provided for transactions which
cannot be recorded in the special journals. Among these transactions are sales returns,
purchase returns and allowances, adjusting entries and closing entries.
Note: See Excel special journal templates for the sample illustrative problems
“The first step to getting what you want is having the courage to get rid of what
you don’t.”
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