Introduction
1. The journal is a memorandum or first record in the process of recording business transactions that occurred before posting to the ledger.
2. The journal records all business transactions according to the date of the Journal showing the chronological records of all business transactions.
3. The journal can reduce the error and omission of transaction records or incomplete transaction records. The journal functions as a control system.
How To Record Into Special Journal Purchase Journal
1. Purchase journals record purchases of merchandise on credit based on the original invoice.
Sales Journal
1. Sales Journal records the sales of merchandise on credit based on invoice copy.
Purchase Return Journal/Outward
1. The Purchase Return Journal records:
i. the return of trade goods to creditors.
ii. allowances received from creditors/suppliers for the return of empty containers.
2. The notes in this journal are based on the original credit note received from creditors.
3. If there is a discount at the time of purchase of goods, the same discount rate should be deducted from the list price when the item is returned to the creditor.
4. No description is required for the Purchase Return Journal.
Sales Return Journal/Inward
1. Sales Return Journal records:
i. the return of merchandise from debtors.
ii. The allowance is given to the debtor for the return of empty containers.
2. The notes in this journal are based on a copy of a credit note sent to the debtor.
3. If there is a discount on the sale of goods to the debtor, the same discount rate should be deducted from the list price when the debtor returns the goods to the business.
4. No description is required for the Sales Return Journal.