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Substationary Journals

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Each separate journal has its own place in accounting. The sales Journal holds all transactions that pertain to sales for the company. These are kales of goods as well as services provided by any company. The sales Journal yields a complete picture of the history of all sales for the company and reflects that activity in a chronological fashion that allows for easy analysis of the data. Posting errors are reduced in the General Ledger by consolidation of the individual entries that are posted into the Sales Journal. The cash receipts Journal holds all entries that involve receipt of funds, including cash sales for goods and collections of accounts receivables. Each of the journals, Sales, Receipts and Purchases, reduce the number of entries made to the General Ledger. The Purchase Journal shows all purchases of merchandise and supplies for a business. The Journal entry here debits merchandise or supply inventory and credits accounts payable for the supplier. This journal contains all the details that are then consolidated as on entry for each period for the General Ledger. This allows for the Purchase Journal to act as the sole source of detailed information regarding purchases. The Cash Payments Journal shows all disbursements of cash and should follow a pre-numbered system of checks. This journal also helps to keep the General Ledger free of clutter and acts as the sole source for the Payments made by the company. A Subsidiary Ledger is a group of accounts with common characteristics; this ledger is used to record transactions to the individual accounts payable balances for each of the company’s

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