CERTIFIED ACCOUNTING TECHNICIAN LEVEL 1

MODULE 4

Special and Combination Journals, and Voucher System

Use Special Journals makes the recording of transactions efficient as it permits division
of labor. When special journals are used, the recording step in the account in the
accounting cycle can be divided among several persons, each of whom is responsible
for particular type of transactions. Personnel’s making entries in special journals need
not have a thorough knowledge of the entire accounting system.

The use of special journals often reduces recording time. Special journal transactions
need no routine explanations for each entry. Also, because special column headings are
used, account titles need not be repeated unlike in the general journal.

SPECIAL JOURNALS

Special Journals are books of original entry other than the general journal. These are
designed for recording specific types of transactions of a similar nature.

Journal Specific Transaction Recorded Posting

Codes
Sales journal Sales of merchandise on account SJ
Cash receipts journal Receipts of cash CRJ
Purchase journal Credit purchases of merchandise and other items PJ
Cash payments journal Payments of cash CPJ
General journal Entries that do not fit in the other journals GJ

Cash sales are usually recorded in the cash receipts journal rather than in the sales journal
because cash is best controlled when all routine cash receipts are recorded in one journal.
Similarly, an entity can increase control over cash disbursements by recording cash
purchases of merchandise or other items in the cash disbursements journal rather than in
the purchases journal.
Recording transactions in sales and cash receipts journals

(Illustrative Problem)

Transactions:
April 10. Sold merchandise on account to R. Yuuki, P32,000. Invoice No. 333;
3/10; n/30
April 12. Sold merchandise on account to B. Cruz, P62,000. Invoice No. 334;
3/10; n/30
April 15. Sold P46,000 merchandise for cash.
April 19. Received payment from R. Yuuki less discounts.
April 29. B. Cruz returned P11,000 of merchandise from the sale in April 12.
April 30. The owner invested additional P40,000 cash.
 SALES JOURNAL

Date Invoice Account Post Reference Accounts Sales

No. Debited Receivables CR
DR
April No. 333 R. Yuuki 32,000 32,000
10
No. 334 B. Cruz 62,000 62,000
12
TOTALS 94,000 94,000

CASH RECEIPTS JOURNAL

Dat O.R Descriptio Debits Credits

e . n Accounts Sales Other Accounts
No. Cash Sales Receivabl Accoun P Amoun
Discount e t Title R t
s
April 001 Cash 46,000 46,00
15 sales 0
002 Collection 31,040 960 32,000
19 - R. Yuuki
003 Investmen 40,000 Owner, 40,000
30 t Capital
TOTALS 117,04 960 32,000 46,00
0 0

Note: April 29 transaction will be recorded in the General Journal together with write-offs of
uncollectible accounts; and certain non-cash transactions involving notes receivable and
notes payable.

PURCHASE JOURNAL

The purchase journal is designed to record purchases of MERCHANDISE, SUPPLIES and

OTHER ASSETS on account.

• The primary source document used as the basis for the entries is the receiving report
(RR).
• The purchase journal has special columns for debits to purchases, office supplies, and
store supplies, as well as for credits to accounts payable.
• A column is also provided for debits to accounts for which no special column is available.

CASH PAYMENTS JOURNAL

• All cash payments are recorded in a cash disbursements journal.
• Cash purchases are recorded in the cash disbursements journal.
• Cash disbursements journal has special columns for credits to cash and purchases
discounts, and for debits to accounts payable and purchases.
GENERAL JOURNAL
Transactions that cannot be recorded appropriately in a special journal are recorded in
the general journal.

Examples include merchandise returns; write-offs of uncollectible accounts; and certain

non-cash transactions involving notes receivable and notes payable.

Year-end adjusting entries are also recorded in the general journal. Adjusting journal
entries are entries used to update the accounts prior to the preparation of financial statements
because they affect more than one accounting period. The following are the accounts subjected
to adjustments:
1. Prepayments
2. Unearned or Deferred Income
3. Accrued Expenses
4. Accrued Income
5. Bad Debts/Doubtful Accounts
6. Depreciation

POSTING is the process of transferring the information found in the journal into the book of final
entry known as the general ledger (GL).

• The general ledger is a group of accounts used by the company.

• The general ledger summarizes the increases or decreases of individual accounts which
are called “control account”. The balance of the control account should equal the total
of the individual account balances in the subsidiary ledger.
• A subsidiary Ledger (SL) is a detailed record of transactions with individual customers or
suppliers. Entries into the SL will come from either the individual entries in the journal or
from the source documents.
• Debits in the journals are correspondingly posted as debits in the GL, and credits in the
journals are likewise posted as credits in the GL.

Steps in posting to the GL:

1. From the journal, copy the period covered by the journal to the general ledger, for ex.
May 1-31, 2022.
2. Under the journal reference (J.R.) column of the general ledger, copy the page number
of the journal.
3. Under the debit column in the GL, transfer the total of the debit amounts from the
journal. Under the credit column in the GL transfer the total of the credit amounts from
the journal.
EXERCISES

E1: Directions: Below are the five (5) duly accomplished special journals. Post the
data from these special journals to the appropriate ledgers—general and subsidiary

SPECIAL JOURNALS
SALES JOURNAL
Page 1
Date Invoice Account Post Reference Accounts Sales
No. Debited Receivables CR
DR
April No. 333 R. Yuuki SL-1 32,000 32,000
10
No. 334 B. Cruz SL-1 62,000 62,000
12
TOTALS 94,000 94,000
GL - page1 GL – page 2

CASH RECEIPTS JOURNAL

Page 1
Dat O.R Descriptio Debits Credits
e . n Accounts Sales Other Accounts
No. Cash Sales Receivabl Accoun PR Amoun
Discount e t Title t
s
April 001 Cash 46,000 46,00
15 sales 0
002 Collection 31,040 960 32,000
19 - R. Yuuki
003 Investmen 400,00 Owner, GL 400,00
30 t 0 Capital 2 0
TOTALS 477,04 960 32,000 46,00
0 0
GL-1 GL-2 GL-1 GL-2
PURCHASES JOURNAL
Page 1
Credits Debits
Other Accounts
R.R Account Office Store
Name of Accoun P Amoun
Dat . s Purchase Supplie Supplie
Supplier PR t Title R t
e No. Payable s s s
Oct Supply SL
020 54,000 54,000
1 Co 1
SL
6 021 Camp Co 92,000 92,000
1

17 022 Cetra Co. 39,000 39,000

Palace
19 023 41,000 41,000
Co
 SedanCo
25 024 58,000 58,000
.
TOTALS 284,000 284,000
GL- 2 GL- 1

CASH PAYMENTS JOURNAL

Page 1
Debits
Credits Other Accounts
Check Cash Purchas Account Account
Dat Numbe Descriptio e s Purchase Title PR Amoun
e r n Discount Payable s t
Oct 79 Supply Co. 52,920 1,080 54,000 SL1
4 – payment
80 Freight in 3,000 Freight GL 3,000
7 In 3
81 Camp Co - 85,260 1,740 87,000 SL1
10 payment
82 Salaries 12,000 Salaries GL 12,000
15 Exp 2
83 Cash 19,000 19,000
16 Purchase
84 Insurance 2,000 Ins. GL 2,000
21 Expens 2
e
85 Drawing 15,000 Owner, GL 15,000
24 Drawing 1
86 Payment - 11,000 11,000
30 Palaces
TOTALS 200,18 2,820 152,000 19,000
0
GL-1 GL-2 GL-1 GL-2

GENERAL JOURNAL

Date Account Titles P.R. Debit Credit

Oct. 9 Accounts Payable—Cetra Company GL-1 11,000
Purchase Returns & Allowances GL-3 11,000

Accounts Payable—Camp Co. GL-1 5,000

30
Purchase Returns & Allowances GL-3 5,000

31 Accounts Payable—Sedan Company GL-1 8,000

Purchase Returns & Allowances GL-3 8,000
GENERAL LEDGER Page 1

Account: Cash
Date Explanation J.R. Debit Credit Balance

Account: Accounts Receivable

Date Explanation J.R. Debit Credit Balance

Account: Accounts Payable

Date Explanation J.R. Debit Credit Balance

Account: Owner, Capital

Date Explanation J.R. Debit Credit Balance
General Ledger Page 2

Account: Owner, Drawing

Date Explanation J.R. Debit Credit Balance

Account: Sales
Date Explanation J.R. Debit Credit Balance

Account: Sales Discount

Date Explanation J.R. Debit Credit Balance

Account: Salaries Expense

Date Explanation J.R. Debit Credit Balance

Account: Insurance Expense

Date Explanation J.R. Debit Credit Balance

Account: Purchases
Date Explanation J.R. Debit Credit Balance
General Ledger Page 3

Account: Freight In
Date Explanation J.R. Debit Credit Balance

Account: Purchase Returns & Allowances

Date Explanation J.R. Debit Credit Balance

Account: Purchase Discounts

Date Explanation J.R. Debit Credit Balance

SUBSIDIARY LEDGERS Page 1

ACCOUNTS RECEIVABLE

Customer: R. Yuuki

Date Explanation J.R. Debit Credit Balance

Customer: B Cruz

Date Explanation J.R. Debit Credit Balance

SUBSIDIARY LEDGERS Page 2

ACCOUNTS PAYABLE

Supplier: Supply Company

Date Explanation J.R. Debit Credit Balance

Supplier: Camp Company

Date Explanation J.R. Debit Credit Balance

Supplier: Cetra Company

Date Explanation J.R. Debit Credit Balance

Supplier: Palace Company

Date Explanation J.R. Debit Credit Balance
E2: Indicate in which of the five journals each transaction must be recorded. Write the letter
only.
A. Sales Journal
B. Cash Receipts Journal
C. Purchases Journal
D. Cash Payments Journal
E. General Journal

_____ 1. Sold merchandise on account.

_____ 2. Paid cash for rent.
_____ 3. Purchased merchandise on account.
______ 4. Returned merchandise bought due to wrong specifications.
_____ 5. Purchased a computer desk top on account.
______ 6. Issued a promissory note to settle an account.
_____ 7. Sold merchandise on account.
______ 8. Received a note in settlement of customer’s account.
_____ 9. Bought goods. Terms: 2/10, n/30.
_____ 10. Paid Salaries
_____ 11. Purchased merchandise, COD.
_____ 12. Paid telephone expense
_____ 13. Purchased supplies on account.
_____ 14. Bought goods on account.
_____ 15 Purchased merchandise. Terms: 2/10, n/30
_____ 16. The owner made additional investment in the business.
_____ 17. Purchased equipment for cash.
_____ 18. Bought supplies on credit.
_____ 19. Paid an account in full.
_____ 20. Owner withdrew cash for personal use.
_____ 21. Paid workers’ salaries.
_____ 22. Paid utilities for the month.
_____ 23. Sold merchandise on account.
_____ 24. Received the bill from Dagupan Electric Corporation
______25. Received cash for goods sold.