Posted: February 17th, 2022
The need for special journals
Special journals are used in accounting to record specific types of transactions, such as purchases or sales. Accountants use special journals to record specialized financial transactions. Organizations need to keep a special journal to boost efficiency in recording transactions. This efficiency is attained by assigning only selected and qualified personnel to ensure that transactions are recorded accurately and in a timely manner. Special journals are kept and managed separately by specific experts, thus minimizing instances of errors. Besides, an organization needs to use special journals to reduce excessive recording. There is no need to keep detailed records because each transaction is recorded in a separate line with well-indicated sections for various components, including date, amount, details, and reference number. Through keeping special journals, an organization can reduce fraud, save time and attain better internal control processes.
Factors that guide understanding and design of special journals
Determining the type of special journal needed is the first factor. In this step, a manager is required to identify specific special journals, including purchase, sales, cash receipt, purchase returns, sales returns, and cash payment journals. The number of transaction also determine the design of special ledgers. When there are many entries, a manager needs to prepare entry lines that can fully accommodate all the transactions. Importantly, a manager must design a special ledge to fit all the components, including date, item/details, ref: number, debit, credit, and the balance.
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