Can you name some of the transactions that can be recorded in the sales journal and purchases journal?

a purchases journal to record ALL CREDIT PURCHASES. a cash receipts journal to record ALL CASH RECEIPTS. a cash disbursements journal to record ALL CASH PAYMENTS; and.

How do you record sale of merchandise for cash?

In the case of a cash sale, the entry is:

1. [debit] Cash. Cash is increased, since the customer pays in cash at the point of sale.
2. [debit] Cost of goods sold.
3. [credit] Revenue.
4. [credit].
5. [credit] Sales tax liability.

What are 2 or 3 types of special journals?

There are four types of Special Journals that are frequently used by merchandising businesses: Sales journals, Cash receipts journals, Purchases journals, and Cash payments journals.

How do you record cash sales in cash receipts journal?

Record any cash payments as a debit in your cash receipts journal like usual. Then, debit the customer’s accounts receivable account for any purchase made on credit. In your sales journal, record the total credit entry.

What are the 4 special journals?

The four main special journals are the sales journal, purchases journal, cash disbursements journal, and cash receipts journal. These special journals were designed because some journal entries occur repeatedly.

What are the 2 types of journal?

Two basic types of journals exist: general and special.

What do you record in a cash receipt journal?

The cash receipts journal is used to record all transactions involving the receipt of cash, including such transactions as cash sales, the receipt of a bank loan, the receipt of a payment on account, and the sale of other assets such as marketable securities.

Is capital recorded in cash receipts journal?

Investment of capital by the owner of a business is recorded in cash receipts, sale of an asset for cash is recorded in cash receipts, all kinds of collections from credit customers are recorded in cash receipts, collection of bank interest, dividend. read more or rental income is also recorded in cash receipts journal …

What are examples of special journals?

Examples of special journals are the cash receipts journal, cash disbursements journal, payroll journal, purchases journal, and sales journal.

What documents are commonly used for special journals?

However, the following journals are commonly used by merchandising companies:

• Purchases journal.
• Purchases returns and allowances journal.
• Sales journal.
• Sales returns and allowances journal.
• Cash receipts journal.
• Cash payments or disbursements journal.
• Bills receivable journal.
• Bills payable journal.