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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When the business is very big, the transition in a business are also very large so, it gets difficult to records all transition in journal which is why the journal is sub divided.
Other journals are;
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
Other journals are;
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
Answered by
2
When the business is running on a very big scale it is impossible for the company to fit in all the transactions in one journal and to have a clear record of every transaction whether it was a sale or purchase, which is why there are sub categories.
- Sales Journal: in which all credit sales are recorded.
- Sales Return Journal: Records the goods returned by customers.
- Cash Book: In which all cash and bank transactions are recorded.
- Purchase Journal: In which all credit purchase of goods is recorded.
- Purchase Return Journal: All the good purchased returned to a supplier are recorded.
- General Journal: All of the remaining entries that cannot be recorded in the above journal are recorded in general journal.
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