Special Journal

Special Journal

Special journals are used by the large organization to record credit sales and credit purchases. These special journals are also known as sales day book or purchase day book.

Reasons for using Special Journal

1.   Work load Management.

One important reason for using special journal is work load management. Different employees are assigned to maintain different journals. Thus work load in the account department is effectively managed by introduction of special journals.

2.   Information Management.

Other important reason for maintain special journal is information management. It is difficult to record and track information in one journal. The large volume of transaction makes things complex and difficult to manage in one journal.

3.   Preparation of Financial statements

Accountant can prepare the financial statement on fast track in case of special journal is maintained by the company, because many information is readily available in the General ledger like total debtor information, total creditor information.

Recording in Special journal

The entries are recorded in special journal and then total of these entries are transferred to general ledger on periodical bases. In general ledger, there are total sales and total creditor account is maintained.

Subsidiary ledger for debtor and creditor is also maintained by the organization to record individual transaction. Subsidiary ledger contains individual accounts of all creditor and debtors.

Recording in Sales Day Book

Recording in sales day book may be divided into

a)    Recording in sales day book.

b)   Transferring total amount to ledger on periodical bases.

c)    Updating the subsidiary ledger of individual for each transaction.

It is important that general ledger is updated periodical, where individual ledger in subsidiary account is updated daily for each transaction.

                                                   Sales Day Books

Rahat	20,000
Farhan	30,000
Imad	40,000
	90,000

Posting in General Ledger

                                                       Sales Account

Date	Particulars	Dr.	Date	Particulars	Cr.
			Total Debtor		90,000

                                                  Total Debtor Account

Date	Particulars	Dr.	Date	Particulars	Cr.
	Total Sales	90,000

Memorandum Record (Subsidiary Ledger)

                                                  Rahat A/C

Date	Particulars	Dr.	Date	Particulars	Cr.
	Sales	20,000		Balance	20,000

                                    

                                                   Farhan Account

Date	Particulars	Dr.	Date	Particulars	Cr.
	Sales	30,000		Balance	30,000

                                                      Imad Account

Date	Particulars	Dr.	Date	Particulars	Cr.
	Sales	40,000		Balance	40,000