BOOKS IN AN ACCOUNTING SYSTEM

GENERAL JOURNAL keeps a chronological records of transactions that do not go into the special journals. Entries for
adjusting entries, corrections, and closing entries are recorded here.

SPECIAL JOURNAL a chronological record of specific transactions of a company.

Cash Receipts Journal keeps track of all cash receipts of a company.
These include the following transactions:
1. Cash received from the owner
2. Cash received from sales/services to customers.
3. Cash received from customers who pay their receivables.
4. Cash received from borrowing a loan from a bank.
All transactions recorded here include a DEBIT TO CASH. Therefore, a fundamental skill in analysing the cash receipts journal
is identifying the account for the corresponding credit in the entry (e.g Owner Capital, Sales Revenue, Accounts Receivable,
Loan Payable).

Cash Disbursements Journal keeps track of all cash disbursements of a company.

These include the following transactions:
1. Cash withdrawn by the owner.
2. Cash paid for the purchase of assets.
3. Cash paid to settle liabilities.
4. Cash paid for expenses.
All transactions recorded here include a CREDIT TO CASH. Therefore, a fundamental skill in analysing the cash disbursements
journal is identifying the account for the corresponding debit in the entry (e.g. Owner Withdrawal, Inventory/Supplies,
Accounts Payable, Expenses).

Sales or Revenue Journal keeps track of all sales or revenue rendered on account of a company.
I.e. if the company earns revenue but the customer has not paid yet, it is recorded in this journal. But if a
company earns revenue and the customer immediately pays, the transaction would be recorded in the
cash receipts journal.
All transactions recorded here include a CREDIT TO A REVENUE ACCOUNT. Therefore, a fundamental skill in analysing the
sales/revenue journal is identifying the account for the corresponding debit in the entry, particularly, the Account Receivable
of the customer.

Purchases Journal keeps track of all purchases made by the company on account.
I.e. if the company buys supplies and inventory but did not pay for it yet, the transaction is recorded in
this journal. But if a company purchased assets using cash, the transaction would be recorded in the
cash disbursements journal.
All transactions recorded here include a CREDIT TO ACCOUNTS PAYABLE or another LIABILITY. Therefore, a fundamental skill
in analysing the cash disbursements journal is identifying the account for the corresponding debit in the entry, particularly,
the Purchases account for periodic inventory systems, the Inventory account for perpetual inventory systems, or any other
asset that was purchased on account.