Question

What is journal subdivided ? Name the special journals generally maintained by business& state the type of transactions entered in each of them?

Answer 1

When the transition in a business is very large it is difficult to 'records all transition in journal so journal is sub divided.
1. cash book - all bank and cash transition are recorded.
2.purchase book: all credit purchase of goods are 'recorded.
3 . sales book - all credit sales are recorded