Journals | Two Types of Journals In Accounting

Journal 

          It is the book of first entry where all the business transactions are recorded in a book. There are two types of journals. They are general journal and special journal.

§  General Journals:

It is also known as journal proper. It is meant for recording all such transactions for which no special journal is required or kept. General journal consists of
§  Opening Entries: When a new set of books is started the old A/c has to be bringing forward from last year book. It is meant for recording these transactions. Entries are made from Balance Sheet of the last year.
§  Closing Entries:  At the end of the accounting year the nominal account are closed by transferring them to trading and P&L A/c. Entries posted for this purpose are termed as closing entries.
§  Adjustment Entries: At the end of the accounting year adjustment entries are to be passed for o/s or accrued entries.
§  Transfer Entries: It is required for transferring one account for transferring. Entries for such are passed in transfer entries.
§  Rectification Entries: It is passed rectifying the error which may have been committed in the books of accounts.
§  Purchase of Fixed Assets: The entries of purchase of fixed assets such as plant, furniture etc is also passed in this journal.

§   Special Journals

It means which is meant for special purpose i.e. recording specific business transaction in a book.
§    Cash Journal: It is meant for recording all cash transactions. It may be further classified into cash receipt and cash payment. Cash receipt journal records all the cash receipts while cash payments journal records all cash payments.
§     Goods Journal: The journal is meant for recording all transactions relating to inventory which is further classified into
·  Purchase Journal: This journal is meant for recording all credit purchases. Cash purchases are to be recorded in cash journal
· Sales Journal: This journal is meant for recording credit sales only not cash sales.
· Purchase Return Journal: it is meant for recording all return of goods purchased on credit. It is also known as written outward journal.
·  Sales Return Journal: It is meant for recording all return of goods sold for credit. It is also known as inward journal.
§     Bills Journal: This journal is meant for recording all bills of exchange or promissory notes received by business from debtors. It can be classified into Bills Receivables and Bills Payable.
·  Bills Receivables: It is meant for recording all bills of exchange or promissory notes received by business from debtors.
·     Bills Payable: It is meant for recording all bills of exchange or promissory notes issued in the favor of its creditors.

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