Specialized journals

Specialized journals

Journals are a simple system of recording transactions. Journals are also easy to maintain and control. They record transactions over a specified time in DATE ORDER. They reduce the number of entries that need to be made into the ledger, they help prevent errors. All the transactions of one type are summarized into appropriate journals.

When transactions occur between your business and external parties, a source document will usually be created at that time to provide evidence of this transaction as well as to give the details of it which will be necessary so that it can be re-recorded in the journal system some time later.

Source Documents are business forms that record the details of transactions and are the basis of an entry made in one of the journals. "Receipt" when a business receives money or cheques over the shop counter it will usually issue a receipt. A receipt is a document that acknowledges that money or cheques have been received. "Cheque book stub"  "Invoice" includes business name (sellers) and address, invoice number, ABN, buyer details, date, description of goods purchased, quantity, unit price, amount (per item x quantity), total price and GST. An invoice is a document that records the details of a credit sale of inventory. The origin of the invoice is either delivered with the goods or sent separately to the customer. A number of copies are kept by the seller. "Delivery note" is a document that sets out the type and quantity of the inventory delivered to the purchaser. When the inventory arrives at the premises of the purchaser, the delivery note is signed by the purchaser and is evidence that the goods ordered have been delivered. A copy is kept by the seller. "Purchase order" "Purchase requisition"  "Credit note" is a document issued by a seller that acknowledges that a customer is entitled to receive a reduction in the amount owing on goods purchased on credit.

Folio Number: Every page of a journal is numbered. This number is known as a folio number. The folio number is used as a cross reference between the journal and the ledger accounts. The use of folio numbers makes it easy to refer back from the ledger account to the journal entry or forward from the journal entry to the ledger account. In addition, folio numbers are a check that all journal entries have been recorded in the ledger system.

Each ledger account has a folio number column. The name and page of the journal from which the ledger entry came is recorded in the folio number column.

Each journal has a folio number column. The number of the ledger account to which the journal entry was posted is recorded in the folio number column of the journal.

Cash money, eftpos, cheques, credit cards. Receipts and payments.

Credit sale of inventory on credit Purchases.

Cash Journals record items sold or purchased with cash and they also record income received (debtor payment, interest) and daily expenses.If the transaction is of a cash nature, you must be convinced that money/cheque/credit card was also exchanged at the time that the good or service was exchanged.

Credit Journals record purchases or sales on credit. If the transaction is of a credit nature, you will assume that the cash will be exchanged after the exchange of the good or service. At this stage, these will only be concerned with your firm acquiring stock and the selling of that stock to customers who will pay later.

Sales Journal … to record those transactions which involved sales on credit. Source documents here would probably be invoices. Provides a chronological record of all credit sales made in the life of a business. Credit sales are transactions where the goods are sold and payment is received at a later date.The source documents for the Sales journal are copies of all invoices given to the debtors.

Double entry Accounting is achieved by: Debit – debtors account with value of sales (increasing a current asset) Credit – sales account with total amount (increasing income)

Choose credit sales journal if this stock is then on-sold to customers who will pay later. The people/organizations here are known as debtors. Collectively, all these accounts that are to be paid to us by our customers are known as assets.

Cash Payments Journal … to record those transactions which involve payments made with cashSource documents would probably be receipts and cheque butts.The cpj records the cash outflow of a business.If the owner of a business withdraws cash from the business an entry is made in the cpj.Discount received is the cash discount received by a purchaser , it is an income item for the purchaser.


Wikimedia Foundation. 2010.

Игры ⚽ Нужно сделать НИР?

Look at other dictionaries:

  • NASW Press Journals — The National Association of Social Workers publishes five journals through its publications division, NASW Press Social Work, Children Schools, Health Social Work, Social Work Research, and Social Work Abstracts. Contents 1 Peer Review 2… …   Wikipedia

  • Nature (journal) — Nature Magazine and Nature (magazine) redirect here. For the U.S. magazine published in Baltimore between 1923–1959, see American Nature Association. Nature   …   Wikipedia

  • Sociology — For the journal, see Sociology (journal). Sociology …   Wikipedia

  • The Delaware Journal of Corporate Law —   Abbreviated title (ISO) Del. J. Corp. Law Discipline …   Wikipedia

  • Academic journal — An academic journal is a peer reviewed periodical in which scholarship relating to a particular academic discipline is published. Academic journals serve as forums for the introduction and presentation for scrutiny of new research, and the… …   Wikipedia

  • Outline of chemistry — The following outline is provided as an overview of and topical guide to chemistry: Chemistry – science of atomic matter (matter that is composed of chemical elements), especially its chemical reactions, but also including its properties,… …   Wikipedia

  • Outline of geophysics — Seismic velocities and boundaries in the interior of the Earth sampled by seismic waves. The following outline is provided as an overview of and topical guide to geophysics: Geophysics – the physics of the Earth and its environment in space; also …   Wikipedia

  • Outline of statistics — The following outline is provided as an overview and guide to the variety of topics included within the subject of statistics: Statistics pertains to the collection, analysis, interpretation, and presentation of data. It is applicable to a wide… …   Wikipedia

  • Cold fusion — This article is about the Fleischmann–Pons claims of nuclear fusion at room temperature. For the original use of the term cold fusion , see Muon catalyzed fusion. For all other definitions, see Cold fusion (disambiguation). Diagram of an open… …   Wikipedia

  • Germany — /jerr meuh nee/, n. a republic in central Europe: after World War II divided into four zones, British, French, U.S., and Soviet, and in 1949 into East Germany and West Germany; East and West Germany were reunited in 1990. 84,068,216; 137,852 sq.… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”