How To Enter Accounting Journal Entries In Special Journals
Every Business Transaction starts with
Original Documents. So, Business Transactions related to Purchases and Sales
require an invoice or voucher to enter or record in Purchases And Sales
Journals or Books. Business Transactions related to Goods that may be returned
by buyer / customer to seller or by seller to supplier are recorded or entered
in Sales Return and Purchase Returns Journals or books of the business.
1. Purchase Journal or Book
When an entrepreneur places an order for goods, he / she
needs, the supplier or seller of the goods makes out an invoice and send one copy
to the buyer who placed the order. Supplier keeps one copy with himself /
herself for the entering the Accounting Journal Entries in his / her Sales
Journal or Book.
The supplier then, sends two copies of the invoice to store
department of the company.
2.
Sales Journal or Book
When an businessman sells goods to his / her customers, he
/ she makes an invoice. One copy is retained by the seller for entering sales
transactions in his / here Sales Journal and another copy is sent to customers
so that they enter purchase transactions in their Purchase Journal. All the
business transactions related to sales are recorded by bookkeepers of the
entrepreneur in the Sales Journal of the Business.
Daily, Bookkeepers record goods sold transactions in Sales
Journal and makes an invoice and sends one copy to purchases / buyers of goods.
3. Purchase Returns / Returns Outward
Journals or Books
Goods returned to supplier are called purchase returns due
to defective supplies from the suppliers or seller of goods. In this case,
purchaser sends a debit note to the supplier and debit suppliers’ account in
his / her Purchase Returns Journal that goods are not in satisfactory condition
so please change them.
The Debit note contains the information about the
quantities of defective goods. One copy is retained by the purchaser with
himself / herself and other copy is sent to the supplier or seller of goods.
4. Sales Returns /
Returns Inward Journals or Books
Goods returned by the customers to the seller due to unsatisfactory
conditions. When goods returned by the customers due to valid reasons and their
claims are accepted by the suppliers or seller of goods, then seller makes a
Credit Note in response of Debit Note. It is a confirmation from the sellers
that goods are really in bad conditions and seller accepts their claims. So
seller sends one copy of Credit Note to buyers / customers and retained one
copy so that bookkeeper enters Sales Returns Transaction in Sales Returns
Journal or Book of the Business. The account of Customer is debited in Sales
Returns Journal by the Bookkeeper.
Now, Hopefully, you will be able to understand how to enter
Bookkeeping or Accounting Journal Entries in Special Journals.
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