Bookkeeping 12. Special Journals

Question 1

1. How many lines are required for every GENERAL JOURNAL entry?

Answer 1

THREE. A debit line, a credit line, and a line for an explanation.

Question 2

2. What do SPECIAL JOURNALS do?

Answer 2

SPECIAL JOURNALS group common types of entries into SEPARATE JOURNALS, where only one line is used instead of three.

Question 3

3. Which items from the CHART OF ACCOUNTS will have their own SPECIAL JOURNALS?

Answer 3

Only the active or busy accounts.

Question 4

4. How do SPECIAL JOURNALS work?

Answer 4

They show both debits and credits on a single line and omit the explanation, because they are all for similar items, such as for “stove sales,” or “cabinet sales.”

Question 5

5. SPECIAL JOURNALS are:

Answer 5

a condensed, single purpose version of the GENERAL JOURNAL in which a single line is used for debits and credits, and the explanation is omitted.

Question 6

6. If you receive cash payments often and pay out in cash in many transactions, then you should:

Answer 6

have a CASH RECEIPTS JOURNAL and a CASH PAYMENTS JOURNAL.

Question 7

7. SPECIAL JOURNALS have columns for

Answer 7

different ACCOUNTS. For example, the CASH PAYMENTS JOURNAL can have a column for ACCOUNTS PAYABLE, for PURCHASE DISCOUNTS, for CASH, etc.

Question 8

8. When the columns in the CASH PAYMENTS JOURNAL are added, they are:

Answer 8

posted to the accounts noted on the column, such as ACCOUNTS PAYABLE, PURCHASE DISCOUNTS, CASH, etc.