Closing journal entries are used to close the temporary accounts for the accounting period, and transfer the balances to the retained earnings account. The accounting closing entries are part of the accounting cycle.
The cash disbursement journal is used to record cash paid by a business and in particular cash paid to suppliers for credit purchases. The cash disbursements journal is not part of the double entry posting and is simply a list of information relating to cash payments used to post the subsidiary and general ledgers.
The cash receipts journal is used to record cash received by a business and in particular cash collection from credit sales to customers. The cash receipts journal is not part of the double entry posting and is simply a list of information relating to cash receipts used to post the subsidiary and general ledgers.
The purchases journal is used to record credit purchases from suppliers. The purchases journal is not part of the double entry posting and is simply a list of information from purchase invoices used to post the accounts payable and general ledgers.
The special journals to general ledger entries below act as a quick reference, and set out the most commonly encountered situations when dealing with the double entry posting of special journals to the general ledger at the end of an accounting period.
In each case the journal entries show the debit and credit account together with a brief narrative.
Adjusting entries are accounting journal entries that are to be made at the end of an accounting period. Adjusting entries are made to ensure that income and expenditure is allocated to the correct accounting period, this means that the accounting records are completed on an accruals basis and are in compliance with the matching principle.
This journal voucher format will help a business to document and post journal entries for accounting transactions. All accounting transactions need to be supported by a voucher and this journal voucher template is available for free download in PDF format.
Journal Entries are used to record transactions in the Journal.
Most accounting transactions pass through what is called a book of prime entry before they reach the general ledger. Books of prime entry include for example the cash book, purchases day-book, and sales day-book.
There are however entries which do not go through a book of prime entry which are recorded in the Journal using Journal Entries.