Why is journal sub-divided? Name the special journals generally maintained by the business and state the type of transactions entered in each of them
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Journal can be subdivided into two types: special and general.
Special journal can be maintained by business like Cash, receivable, payable, purchase, sales.. These journals help in sorting out same type of transactions which happens daily or in bulk..
Sales Journal includes entries related to cash and credit sales.
Purchase includes cash and credit purchase
Receivable includes entries related to current receivables like debtors, BR.
Payable includes entries for payables like outstanding expenses, BP..
Big businesses do maintain special journals to keep repetitive transactions seperate, to save time, easy report of these items..
Special journal can be maintained by business like Cash, receivable, payable, purchase, sales.. These journals help in sorting out same type of transactions which happens daily or in bulk..
Sales Journal includes entries related to cash and credit sales.
Purchase includes cash and credit purchase
Receivable includes entries related to current receivables like debtors, BR.
Payable includes entries for payables like outstanding expenses, BP..
Big businesses do maintain special journals to keep repetitive transactions seperate, to save time, easy report of these items..
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