Introduction
In accounting a journal is a book that is used for noting all the records of business transaction for a specific time period and every transaction is called “journal entry”. The term ‘accounting journals’ can refer to either the physical books that accountants use to record transactions (also known as ‘ledgers’).
Types
There are two main types of accounting generals i.e.
General Journal
Specialize Journals
General Journal
The general journal is used to record all the financial transactions. This includes the date of the transaction, the name of the person or company involved in the transaction, the amount of the transaction, and any other relevant information. The general journal is used to track both revenue and expenses.
Specialized Journals
Specialized accounting journals are used in different types of accounting, such as double-entry book-keeping and single-entry bookkeeping. In double-entry bookkeeping, transactions are recorded in two separate journals (also known as ‘ledgers’), with a debit entry in one journal and a corresponding credit entry in the other. This method is used in order to prevent errors and to ensure that the books balance. In single-entry bookkeeping, on the other hand, only one journal is used to record all transactions. This method is simpler and is often used by small businesses.
There are various types of specialized journals, each of which is used for different purposes. The most common types of specialized journals are;
Sales journal
Purchases journal
Cash receipts journal
Cash payments journal
Sales Journal
The sales journal is used to record all sales transactions. This includes the date of the sale, the customer’s name, the amount of the sale, and any other relevant information. The sales journal is used to track revenue and to keep track of what is owed to the company by customers.
Purchases Journal
The purchases journal is used to record all purchase transactions. This includes the date of the purchase, the vendor’s name, the amount of the purchase, and any other relevant information. The purchases journal is used to track expenses and to keep track of what is owed to vendors by the company.
Cash Receipts Journal
The cash receipts journal is used to record all cash received. This includes the date of the receipt, the name of the person or company who paid the cash, the amount of the cash received, and any other relevant information. The cash receipts journal is used to track revenue and to keep track of what is owed to the company by customers. Cash Payments Journal The cash payments journal is used to record all cash paid out. This includes the date of the payment, the name of the person or company to whom the cash was paid, the amount of the cash paid, and any other relevant information. The cash payments journal is used to track expenses and to keep track of what is owed to vendors by the company.