Home » Accounting Explanation » Books of original entries - Specialized Journals


When a business is small, it can keep all transactions record in one general journal or day book. However, as the business grows, its scale of financial activities grows as well and more day to day financial transactions take place. As you know a business needs to record the detail of transaction as much as possible, for a large business it's impossible to record all financial transactions in one book because it needs lot pages of a book to enter large number of transactions and it is difficult to find a specific transaction and to detect an error in recording the transactions and even the single book would be too hard to handle and manage

The simple solution to this problem is the use of more than one book to record the details of transactions. When a business uses more than one book to record transactions, it puts together all the similar transactions in a book. In each book, we don’t record and mix transactions of different nature.

Books of original Entries

As we know books of original entries are the books in which we first record the transactions. These Specialized journals or day books are part of books of original entries. Thus, we have separate books for each kind of transaction. For example sale of goods will be recorded in sales journal or sales day book

The Terms day book and Journal

Most of the people find themselves confused while reading the terms journal and day book. Both Journal and Day book are the same thing. We can use either term.

Types of specialized journal

  • Sales Journal or Sales day book - For recording credit sales
  • Purchase journal or purchase day book - For recording purchases on credit
  • Sales return journal or sale return day book - For recording sales return
  • Purchase return journal or purchase return day book - For recording purchases return
  • Cash receipts journal - For recording all kind of cash receipts
  • Cash payments journal - For recording all kind of cash payments


Sales journal or sales day book

Sales journal is used to record the entries or transactions for credit sales. Remember that sales journal is only used to record entries for credit sales not for cash sales and sales return

Simple double entry for credit sales

Debit--> Debtor-Customer’s name/description

Credit--> Sales


DATE
INVOICE
CUSTOMER/ACCOUNT DEBITED
FOLIO
AMOUNT $
















Date Column: is used to record the date of credit sale
Invoice Column: is used to record the No. of invoice issued
Customer Column: is used to record the name of customer that purchased your goods
Folio Column: records reference to sales ledger account
Amount Column: Amount of credit sales that was made

EXAMPLE


Record the following transactions of XYZ store in a sales journal for the month of march, 2011



   March 1.Sold goods to Mr. X worth $50 on credit invoice No. 342 
   March 21.The store sold goods to Mr.Y for $100 on account and issued Invoice No. 343  
   March 26.Sold goods to Mr. Z for $250 on credit Invoice number: 344
   March 30.Goods of worth $222 were sold to Mr. G on account, invoice#345




Sales journal

DATE
INVOICE
CUSTOMER/ACCOUNT DEBITED
FOLIO
AMOUNT $
Mar. 1
Mar. 21
Mar. 26
Mar. 30
342
343
344
345
Mr. X
Mr. Y
Mr. Z
Mr. G

50
100
250
222
Mar. 31
TOTAL
622