ABSTRACT
A small company needs to record dozens of financial facts daily, and a large company hundreds more complicated facts. It is obvious that this way of recording makes ledger accounts less than transparent. To solve this problem, accounting documents that are similar, for instance all purchase invoices, are collected in special journals each accounting period, after which they are recorded together in one journal entry as if there were just one purchase invoice. This chapter uses the following special journals: purchase book, sales book, cash book, and general journal. In practice, there are many more special journals: one can be made for any similar accounting documents that will be recorded in the journal at the same time. The chapter provides examples that shows how a firm received the purchase and sales invoices. It includes multiple exercises that help students try themselves and prepare special journals for a set of financial scenarios.
