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Subsidiary and Special Ledgers Journals

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Deanna Cain
XACC/280

CheckPoint: Subsidiary and Special Ledgers Journals

The four different special journals consist of the Sales Journal, Cash Receipt Journal, Purchases Journal, and the Cash Payments Journal. Each of the Journals is a very important part in the final outcome.

The Sales Journal is chronological entries of all goods sold as well as services provided; which ever the case may be. Keep in mind that the cash sale entries are not entered here. The advantage of using the Sales Journal is that this Journal reflects the history of all sales made by the company; providing dates and customer information for payment. The company would use the Sales Journal when there has been sales made or services have been provided, and the transactions were made by credit (non-cash transactions).

The Cash Receipts Journal is where the chronological entries of all cash received for sales and services, therefore credit type sales are not entered in this Journal; they are recorded in the Sales Journal instead. The advantage of using the Cash Receipts Journal is that it is designed to record all cash coming into the company whatever the source may be. The business would use the Cash Receipt Journal when using the accrual accounting system to track the cash it receives in exchange for a sale or a service provided.

The business would use the Purchases Journal when purchases are made with credit. This Journal does not record any cash purchases; they are recorded in the Cash Payment Journal. The Purchases Journal is a book of original entry, where all purchases are first recorded. The advantage of using this Journal is that the company is able to track purchases made by their company.

The Cash Payments Journal records the cash payments made by the business. The advantage of using this Journal is that the business is able to see what

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