Accounting Books - Journal and Ledger

General Journal and Special Journal

2 types of journal

special journals

Each _________ journal is designed to record a particular type of transaction efficiently and quickly.

Cash Receipts Journal Cash Disbursements Journal Sales Journal (Sales on Account Journal) Purchase Journal (Purchase on Account Journal)

Examples of special journals

journal

It is called the book of original because it is the accounting record in which financial transactions are first recorded.

day-to day transactions

Journals and ledgers can be compared to a personal diary because they are used to record the ___________ transactions of the business.

journals

Many businesses maintain several types of __________. The nature of the business operations and the volume of transactions determine the type and number of _________ needed.

general journal

Recording all transactions in the ___________ journal is not cost effective and time consuming.

journal

The is a chronological record (day-by-day) of business transactions.

journalizing

The process of recording a transaction is called ______________ the transactions.

general journal

The simplest type of journal

ledger

This is also referred to as the T-Account because the basic form of a _________ is like the letter "T".

general journal

This type of journal is unique among journals because it may be used to record any type of business transactions.

special journals

To speed up and simplify the recording process, most businesses make use of __________ journals.

general ledger / ledger

and why it is called as the book of final entry.

ledger

is called the "book of final entry" because all the balances in the ledger are used in the preparation of financial statements.

Cash Receipts Journal

is used to record all cash that had been received.

Purchase Journal (Purchase on Account Journal)

is used to record all purchases of inventory on credit (or on account)

Sales Journal (Sales on Account Journal)

is used to record all sales on credit (on account)

Cash Disbursements Journal

is used to record all transactions involving cash payments.

journal

it is called the book of original entry.

ledger

refers to the accounting book in which the accounts and their related amounts as recorded in the journal are posted to periodically.