In which journal Do you record credit sales and credit purchases?
Matthew Harrington
Updated on January 03, 2026
Special Journals
| Types and Purposes of Special Journals | ||
|---|---|---|
| Journal Name | Journal Purpose | Account(s) Debited |
| Sales Journal | Sales on credit | Accounts Receivable, Cost of Goods Sold |
| Purchases Journal | Purchases on credit | Inventory |
| Cash Disbursements Journal | Paying cash | Could be: Accounts Payable, or other accounts |
What is the journal entry of credit sales?
In the case of credit sales, the respective “debtor’s account” is debited, whereas “sales account” is credited with the equal amount….Journal Entry for Credit Sales.
| Debtor’s Account | Debit |
|---|---|
| To Sales Account | Credit |
What is the use of the sales journal?
A sales journal is a subsidiary ledger used to store detailed sales transactions. Its main purpose is to remove a source of high-volume transactions from the general ledger, thereby streamlining the general ledger.
Where do you record credit sales?
When the goods are sold on credit to the buyer of the goods, then the sales account will be credit in the books of accounts of the company. It will increase the revenue, and thus it will be shown in the income statement of the company in the sale period.
How do you record cash payments 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 types of journals?
Types of Journals
- academic/scholarly journals.
- trade journals.
- current affairs/opinion magazines.
- popular magazines.
- newspapers.
What do you record in cash receipts 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.
