VCE Accounting Unit 3. Video of this presentation can be found on my YouTube channel here https://www.youtube.com/channel/UCf5jyuJoYwie8tWfvjEc0zg.

1. 5.1
THE NEED FOR
SPECIAL JOURNALS

2. Video of this presentation at…
YouTube Channel for VCE Accounting

3. © Michael Allison. Author’s permission required for external use.
 The accounting process so far…
5.1 THE NEED FOR SPECIAL JOURNALS
Balance
Sheet
Income
Statement
Trial
Balance
1. Transactions
occur
2. Enter transactions in
General Ledger
3. Prepare a
Trial Balance
4. Prepare Financial
Reports
Transaction #1
Transaction #2
Transaction #3
Transaction #4
Transaction #5
Transaction #6
Transaction #7
Transaction #8
General
Ledger
Ledger
Ledger
Ledger
Ledger

4. © Michael Allison. Author’s permission required for external use.
 This resulted in every transaction being recorded in the General Ledger…
Cash at Bank [A]
1/8 Balance 1200 4/8 Petrol/GST 55
2/8 Sales/GST 3520 5/8 Advertising/GST 154
8/8 Sales/GST 2860 8/8 Drawings 300
12/8 Debtors 300 11/8 Insurance/GST 528
18/8 Sales/GST 3080 12/8 Petrol/GST 55
23/8 Sales/GST 1980 13/8 Stationary/GST 33
26/8 Debtors 100 16/8 Creditors 1500
19/8 Petrol/GST 55
20/8 Stock/GST 1980
24/8 Loan 250
25/8 Petrol/GST 44
29/8 Drawings 400
Cash at Bank [A]
1/8 Balance 1200
2/8 Sales/GST 3520
Cash at Bank [A]
1/8 Balance 1200 4/8 Petrol/GST 55
2/8 Sales/GST 3520
Cash at Bank [A]
1/8 Balance 1200 4/8 Petrol/GST 55
2/8 Sales/GST 3520 5/8 Advertising/GST 154
Cash at Bank [A]
1/8 Balance 1200 4/8 Petrol/GST 55
2/8 Sales/GST 3520 5/8 Advertising/GST 154
8/8 Drawings 300
Cash at Bank [A]
1/8 Balance 1200 4/8 Petrol/GST 55
2/8 Sales/GST 3520 5/8 Advertising/GST 154
8/8 Sales/GST 2860 8/8 Drawings 300
Cash at Bank [A]
1/8 Balance 1200 4/8 Petrol/GST 55
2/8 Sales/GST 3520 5/8 Advertising/GST 154
8/8 Sales/GST 2860 8/8 Drawings 300
11/8 Insurance/GST 528
Cash at Bank [A]
1/8 Balance 1200 4/8 Petrol/GST 55
2/8 Sales/GST 3520 5/8 Advertising/GST 154
8/8 Sales/GST 2860 8/8 Drawings 300
12/8 Debtors 300 11/8 Insurance/GST 528
Cash at Bank [A]
1/8 Balance 1200 4/8 Petrol/GST 55
2/8 Sales/GST 3520 5/8 Advertising/GST 154
8/8 Sales/GST 2860 8/8 Drawings 300
12/8 Debtors 300 11/8 Insurance/GST 528
12/8 Petrol/GST 55
Cash at Bank [A]
1/8 Balance 1200 4/8 Petrol/GST 55
2/8 Sales/GST 3520 5/8 Advertising/GST 154
8/8 Sales/GST 2860 8/8 Drawings 300
12/8 Debtors 300 11/8 Insurance/GST 528
12/8 Petrol/GST 55
13/8 Stationary/GST 33
Cash at Bank [A]
1/8 Balance 1200 4/8 Petrol/GST 55
2/8 Sales/GST 3520 5/8 Advertising/GST 154
8/8 Sales/GST 2860 8/8 Drawings 300
12/8 Debtors 300 11/8 Insurance/GST 528
12/8 Petrol/GST 55
13/8 Stationary/GST 33
16/8 Creditors 1500
Cash at Bank [A]
1/8 Balance 1200 4/8 Petrol/GST 55
2/8 Sales/GST 3520 5/8 Advertising/GST 154
8/8 Sales/GST 2860 8/8 Drawings 300
12/8 Debtors 300 11/8 Insurance/GST 528
18/8 Sales/GST 3080 12/8 Petrol/GST 55
13/8 Stationary/GST 33
16/8 Creditors 1500
Cash at Bank [A]
1/8 Balance 1200 4/8 Petrol/GST 55
2/8 Sales/GST 3520 5/8 Advertising/GST 154
8/8 Sales/GST 2860 8/8 Drawings 300
12/8 Debtors 300 11/8 Insurance/GST 528
18/8 Sales/GST 3080 12/8 Petrol/GST 55
13/8 Stationary/GST 33
16/8 Creditors 1500
19/8 Petrol/GST 55
Cash at Bank [A]
1/8 Balance 1200 4/8 Petrol/GST 55
2/8 Sales/GST 3520 5/8 Advertising/GST 154
8/8 Sales/GST 2860 8/8 Drawings 300
12/8 Debtors 300 11/8 Insurance/GST 528
18/8 Sales/GST 3080 12/8 Petrol/GST 55
13/8 Stationary/GST 33
16/8 Creditors 1500
19/8 Petrol/GST 55
20/8 Stock/GST 1980
Cash at Bank [A]
1/8 Balance 1200 4/8 Petrol/GST 55
2/8 Sales/GST 3520 5/8 Advertising/GST 154
8/8 Sales/GST 2860 8/8 Drawings 300
12/8 Debtors 300 11/8 Insurance/GST 528
18/8 Sales/GST 3080 12/8 Petrol/GST 55
23/8 Sales/GST 1980 13/8 Stationary/GST 33
16/8 Creditors 1500
19/8 Petrol/GST 55
20/8 Stock/GST 1980
Cash at Bank [A]
1/8 Balance 1200 4/8 Petrol/GST 55
2/8 Sales/GST 3520 5/8 Advertising/GST 154
8/8 Sales/GST 2860 8/8 Drawings 300
12/8 Debtors 300 11/8 Insurance/GST 528
18/8 Sales/GST 3080 12/8 Petrol/GST 55
23/8 Sales/GST 1980 13/8 Stationary/GST 33
16/8 Creditors 1500
19/8 Petrol/GST 55
20/8 Stock/GST 1980
24/8 Loan 250
Cash at Bank [A]
1/8 Balance 1200 4/8 Petrol/GST 55
2/8 Sales/GST 3520 5/8 Advertising/GST 154
8/8 Sales/GST 2860 8/8 Drawings 300
12/8 Debtors 300 11/8 Insurance/GST 528
18/8 Sales/GST 3080 12/8 Petrol/GST 55
23/8 Sales/GST 1980 13/8 Stationary/GST 33
16/8 Creditors 1500
19/8 Petrol/GST 55
20/8 Stock/GST 1980
24/8 Loan 250
25/8 Petrol/GST 44
Cash at Bank [A]
1/8 Balance 1200 4/8 Petrol/GST 55
2/8 Sales/GST 3520 5/8 Advertising/GST 154
8/8 Sales/GST 2860 8/8 Drawings 300
12/8 Debtors 300 11/8 Insurance/GST 528
18/8 Sales/GST 3080 12/8 Petrol/GST 55
23/8 Sales/GST 1980 13/8 Stationary/GST 33
26/8 Debtors 100 16/8 Creditors 1500
19/8 Petrol/GST 55
20/8 Stock/GST 1980
24/8 Loan 250
25/8 Petrol/GST 44
Cash at Bank [A]
1/8 Balance 1200 4/8 Petrol/GST 55
2/8 Sales/GST 3520 5/8 Advertising/GST 154
8/8 Sales/GST 2860 8/8 Drawings 300
12/8 Debtors 300 11/8 Insurance/GST 528
18/8 Sales/GST 3080 12/8 Petrol/GST 55
23/8 Sales/GST 1980 13/8 Stationary/GST 33
26/8 Debtors 100 16/8 Creditors 1500
19/8 Petrol/GST 55
20/8 Stock/GST 1980
24/8 Loan 250
25/8 Petrol/GST 44
29/8 Drawings 400
What’s wrong with doing it this way?
5.1 THE NEED FOR SPECIAL JOURNALS

5. © Michael Allison. Author’s permission required for external use.
 What’s wrong with doing it
this way?
 18 transactions = 54
chances to make a
mistake.
 Cluttered and bulky detail.
Does it meet our definition
of Understandability?
 What’s the final balance?
Hard to calculate easily.
Cash at Bank [A]
1/8 Balance 1200 4/8 Petrol/GST 55
2/8 Sales/GST 3520 5/8 Advertising/GST 154
8/8 Sales/GST 2860 8/8 Drawings 300
12/8 Debtors 300 11/8 Insurance/GST 528
18/8 Sales/GST 3080 12/8 Petrol/GST 55
23/8 Sales/GST 1980 13/8 Stationary/GST 33
26/8 Debtors 100 16/8 Creditors 1500
19/8 Petrol/GST 55
20/8 Stock/GST 1980
24/8 Loan 250
25/8 Petrol/GST 44
29/8 Drawings 400
Cash at Bank [A]
1/8 Balance 1200 4/8 Petrol/GST 55
2/8 Sales/GST 3520 5/8 Advertising/GST 154
8/8 Sales/GST 2860 8/8 Drawings 300
12/8 Debtors 300 11/8 Insurance/GST 528
18/8 Sales/GST 3080 12/8 Petrol/GST 55
23/8 Sales/GST 1980 13/8 Stationary/GST 33
26/8 Debtors 100 16/8 Creditors 1500
19/8 Petrol/GST 55
20/8 Stock/GST 1980
24/8 Loan 250
25/8 Petrol/GST 44
29/8 Drawings 400
13040 13040
Cash at Bank [A]
1/8 Balance 1200 4/8 Petrol/GST 55
2/8 Sales/GST 3520 5/8 Advertising/GST 154
8/8 Sales/GST 2860 8/8 Drawings 300
12/8 Debtors 300 11/8 Insurance/GST 528
18/8 Sales/GST 3080 12/8 Petrol/GST 55
23/8 Sales/GST 1980 13/8 Stationary/GST 33
26/8 Debtors 100 16/8 Creditors 1500
19/8 Petrol/GST 55
20/8 Stock/GST 1980
24/8 Loan 250
25/8 Petrol/GST 44
29/8 Drawings 400
31/8 Balance 7686
13040 13040
Cash at Bank [A]
1/8 Balance 1200 4/8 Petrol/GST 55
2/8 Sales/GST 3520 5/8 Advertising/GST 154
8/8 Sales/GST 2860 8/8 Drawings 300
12/8 Debtors 300 11/8 Insurance/GST 528
18/8 Sales/GST 3080 12/8 Petrol/GST 55
23/8 Sales/GST 1980 13/8 Stationary/GST 33
26/8 Debtors 100 16/8 Creditors 1500
19/8 Petrol/GST 55
20/8 Stock/GST 1980
24/8 Loan 250
25/8 Petrol/GST 44
29/8 Drawings 400
31/8 Balance 7686
13040 13040
1/9 Balance 7686
5.1 THE NEED FOR SPECIAL JOURNALS

6. © Michael Allison. Author’s permission required for external use.
 An extra step is required in between transactions and the General Ledger…
Balance
Sheet
Income
Statement
Trial
Balance
2. Enter transactions in
General Ledger
3. Prepare a
Trial Balance
4. Prepare Financial
Reports
General
Ledger
Ledger
Ledger
Ledger
Ledger
1. Transactions
occur
Transaction #1
Transaction #2
Transaction #3
Transaction #4
Transaction #5
Transaction #6
Transaction #7
Transaction #8
3. Enter transactions in
General Ledger
4. Prepare a
Trial Balance
5. Prepare Financial
Reports
Special
Journals
2. Special
Journals
Cash
Receipts
Journal
Cash
Payments
Journal
Sales
Journal
Purchase
Journal
5.1 THE NEED FOR SPECIAL JOURNALS

7. © Michael Allison. Author’s permission required for external use.
Cash Receipts Journal
Date Details Receipt
Number
Bank Debtors
Control
Cost of
Sales
Sales Sundries GST
Cash Receipts Journal
Date Details Receipt
Number
Bank Debtors
Control
Cost of
Sales
Sales Sundries GST
Jan 2 Cash sales 651 66 30 60 6
Cash Receipts Journal
Date Details Receipt
Number
Bank Debtors
Control
Cost of
Sales
Sales Sundries GST
Jan 2 Cash sales 651 66 30 60 6
Jan 5 Debtor - D. Barr 652 80 80
Cash Receipts Journal
Date Details Receipt
Number
Bank Debtors
Control
Cost of
Sales
Sales Sundries GST
Jan 2 Cash sales 651 66 30 60 6
Jan 5 Debtor - D. Barr 652 80 80
Jan 6 Capital 653 5000 5000
Cash Receipts Journal
Date Details Receipt
Number
Bank Debtors
Control
Cost of
Sales
Sales Sundries GST
Jan 2 Cash sales 651 66 30 60 6
Jan 5 Debtor - D. Barr 652 80 80
Jan 6 Capital 653 5000 5000
Jan 10 Cash sales 654 110 60 100 10
Cash Receipts Journal
Date Details Receipt
Number
Bank Debtors
Control
Cost of
Sales
Sales Sundries GST
Jan 2 Cash sales 651 66 30 60 6
Jan 5 Debtor - D. Barr 652 80 80
Jan 6 Capital 653 5000 5000
Jan 10 Cash sales 654 110 60 100 10
Jan 12 Cash sales 655 66 30 60 6
Cash Receipts Journal
Date Details Receipt
Number
Bank Debtors
Control
Cost of
Sales
Sales Sundries GST
Jan 2 Cash sales 651 66 30 60 6
Jan 5 Debtor - D. Barr 652 80 80
Jan 6 Capital 653 5000 5000
Jan 10 Cash sales 654 110 60 100 10
Jan 12 Cash sales 655 66 30 60 6
Jan 14 Cash sales 656 132 70 120 12
Cash Receipts Journal
Date Details Receipt
Number
Bank Debtors
Control
Cost of
Sales
Sales Sundries GST
Jan 2 Cash sales 651 66 30 60 6
Jan 5 Debtor - D. Barr 652 80 80
Jan 6 Capital 653 5000 5000
Jan 10 Cash sales 654 110 60 100 10
Jan 12 Cash sales 655 66 30 60 6
Jan 14 Cash sales 656 132 70 120 12
Jan 14 Cash sales 657 110 60 100 10
Jan 17 Debtor - P. Ashworth 658 200 200
Cash Receipts Journal
Date Details Receipt
Number
Bank Debtors
Control
Cost of
Sales
Sales Sundries GST
Jan 2 Cash sales 651 66 30 60 6
Jan 5 Debtor - D. Barr 652 80 80
Jan 6 Capital 653 5000 5000
Jan 10 Cash sales 654 110 60 100 10
Jan 12 Cash sales 655 66 30 60 6
Jan 14 Cash sales 656 132 70 120 12
Jan 14 Cash sales 657 110 60 100 10
Jan 17 Debtor - P. Ashworth 658 200 200
Jan 20 Cash sales 659 154 70 140 14
Cash Receipts Journal
Date Details Receipt
Number
Bank Debtors
Control
Cost of
Sales
Sales Sundries GST
Jan 2 Cash sales 651 66 30 60 6
Jan 5 Debtor - D. Barr 652 80 80
Jan 6 Capital 653 5000 5000
Jan 10 Cash sales 654 110 60 100 10
Jan 12 Cash sales 655 66 30 60 6
Jan 14 Cash sales 656 132 70 120 12
Jan 14 Cash sales 657 110 60 100 10
Jan 17 Debtor - P. Ashworth 658 200 200
Jan 20 Cash sales 659 154 70 140 14
Jan 21 Interest on investments --- 143 143
Cash Receipts Journal
Date Details Receipt
Number
Bank Debtors
Control
Cost of
Sales
Sales Sundries GST
Jan 2 Cash sales 651 66 30 60 6
Jan 5 Debtor - D. Barr 652 80 80
Jan 6 Capital 653 5000 5000
Jan 10 Cash sales 654 110 60 100 10
Jan 12 Cash sales 655 66 30 60 6
Jan 14 Cash sales 656 132 70 120 12
Jan 14 Cash sales 657 110 60 100 10
Jan 17 Debtor - P. Ashworth 658 200 200
Jan 20 Cash sales 659 154 70 140 14
Jan 21 Interest on investments --- 143 143
Jan 24 Cash sales 660 99 50 90 9
Cash Receipts Journal
Date Details Receipt
Number
Bank Debtors
Control
Cost of
Sales
Sales Sundries GST
Jan 2 Cash sales 651 66 30 60 6
Jan 5 Debtor - D. Barr 652 80 80
Jan 6 Capital 653 5000 5000
Jan 10 Cash sales 654 110 60 100 10
Jan 12 Cash sales 655 66 30 60 6
Jan 14 Cash sales 656 132 70 120 12
Jan 14 Cash sales 657 110 60 100 10
Jan 17 Debtor - P. Ashworth 658 200 200
Jan 20 Cash sales 659 154 70 140 14
Jan 21 Interest on investments --- 143 143
Jan 24 Cash sales 660 99 50 90 9
Jan 28 Debtor - D. Barr 661 100 100
Cash Receipts Journal
Date Details Receipt
Number
Bank Debtors
Control
Cost of
Sales
Sales Sundries GST
Jan 2 Cash sales 651 66 30 60 6
Jan 5 Debtor - D. Barr 652 80 80
Jan 6 Capital 653 5000 5000
Jan 10 Cash sales 654 110 60 100 10
Jan 12 Cash sales 655 66 30 60 6
Jan 14 Cash sales 656 132 70 120 12
Jan 14 Cash sales 657 110 60 100 10
Jan 17 Debtor - P. Ashworth 658 200 200
Jan 20 Cash sales 659 154 70 140 14
Jan 21 Interest on investments --- 143 143
Jan 24 Cash sales 660 99 50 90 9
Jan 28 Debtor - D. Barr 661 100 100
Jan 31 Total receipts 6260 380 370 670 5143 67
5.1 THE NEED FOR SPECIAL JOURNALS

8. © Michael Allison. Author’s permission required for external use.
Cash Payments Journal
Date Details Cheque
Number
Bank Creditors
Control
Stock
Control
Advert-
ising
Wages Drawings Sundries GST
Cash Payments Journal
Date Details Cheque
Number
Bank Creditors
Control
Stock
Control
Advert-
ising
Wages Drawings Sundries GST
Jan 3 Stock control 901 550 500 50
Cash Payments Journal
Date Details Cheque
Number
Bank Creditors
Control
Stock
Control
Advert-
ising
Wages Drawings Sundries GST
Jan 3 Stock control 901 550 500 50
Jan 4 Drawings 902 100 100 0
Cash Payments Journal
Date Details Cheque
Number
Bank Creditors
Control
Stock
Control
Advert-
ising
Wages Drawings Sundries GST
Jan 3 Stock control 901 550 500 50
Jan 4 Drawings 902 100 100 0
Jan 5 Stock control 903 440 400 40
Cash Payments Journal
Date Details Cheque
Number
Bank Creditors
Control
Stock
Control
Advert-
ising
Wages Drawings Sundries GST
Jan 3 Stock control 901 550 500 50
Jan 4 Drawings 902 100 100 0
Jan 5 Stock control 903 440 400 40
Jan 6 Wages 904 200 200 0
Cash Payments Journal
Date Details Cheque
Number
Bank Creditors
Control
Stock
Control
Advert-
ising
Wages Drawings Sundries GST
Jan 3 Stock control 901 550 500 50
Jan 4 Drawings 902 100 100 0
Jan 5 Stock control 903 440 400 40
Jan 6 Wages 904 200 200 0
Jan 9 Advertising 905 88 80 8
Cash Payments Journal
Date Details Cheque
Number
Bank Creditors
Control
Stock
Control
Advert-
ising
Wages Drawings Sundries GST
Jan 3 Stock control 901 550 500 50
Jan 4 Drawings 902 100 100 0
Jan 5 Stock control 903 440 400 40
Jan 6 Wages 904 200 200 0
Jan 9 Advertising 905 88 80 8
Jan 11 Insurance 906 550 500 50
Cash Payments Journal
Date Details Cheque
Number
Bank Creditors
Control
Stock
Control
Advert-
ising
Wages Drawings Sundries GST
Jan 3 Stock control 901 550 500 50
Jan 4 Drawings 902 100 100 0
Jan 5 Stock control 903 440 400 40
Jan 6 Wages 904 200 200 0
Jan 9 Advertising 905 88 80 8
Jan 11 Insurance 906 550 500 50
Jan 12 Creditor – T. Sports 907 140 140 0
Cash Payments Journal
Date Details Cheque
Number
Bank Creditors
Control
Stock
Control
Advert-
ising
Wages Drawings Sundries GST
Jan 3 Stock control 901 550 500 50
Jan 4 Drawings 902 100 100 0
Jan 5 Stock control 903 440 400 40
Jan 6 Wages 904 200 200 0
Jan 9 Advertising 905 88 80 8
Jan 11 Insurance 906 550 500 50
Jan 12 Creditor – T. Sports 907 140 140 0
Jan 13 Wages 908 200 200 0
Cash Payments Journal
Date Details Cheque
Number
Bank Creditors
Control
Stock
Control
Advert-
ising
Wages Drawings Sundries GST
Jan 3 Stock control 901 550 500 50
Jan 4 Drawings 902 100 100 0
Jan 5 Stock control 903 440 400 40
Jan 6 Wages 904 200 200 0
Jan 9 Advertising 905 88 80 8
Jan 11 Insurance 906 550 500 50
Jan 12 Creditor – T. Sports 907 140 140 0
Jan 13 Wages 908 200 200 0
Jan 16 Stock control 909 440 400 40
Cash Payments Journal
Date Details Cheque
Number
Bank Creditors
Control
Stock
Control
Advert-
ising
Wages Drawings Sundries GST
Jan 3 Stock control 901 550 500 50
Jan 4 Drawings 902 100 100 0
Jan 5 Stock control 903 440 400 40
Jan 6 Wages 904 200 200 0
Jan 9 Advertising 905 88 80 8
Jan 11 Insurance 906 550 500 50
Jan 12 Creditor – T. Sports 907 140 140 0
Jan 13 Wages 908 200 200 0
Jan 16 Stock control 909 440 400 40
Jan 19 Drawings 910 150 150 0
Cash Payments Journal
Date Details Cheque
Number
Bank Creditors
Control
Stock
Control
Advert-
ising
Wages Drawings Sundries GST
Jan 3 Stock control 901 550 500 50
Jan 4 Drawings 902 100 100 0
Jan 5 Stock control 903 440 400 40
Jan 6 Wages 904 200 200 0
Jan 9 Advertising 905 88 80 8
Jan 11 Insurance 906 550 500 50
Jan 12 Creditor – T. Sports 907 140 140 0
Jan 13 Wages 908 200 200 0
Jan 16 Stock control 909 440 400 40
Jan 19 Drawings 910 150 150 0
Jan 20 Wages 911 200 200 0
Cash Payments Journal
Date Details Cheque
Number
Bank Creditors
Control
Stock
Control
Advert-
ising
Wages Drawings Sundries GST
Jan 3 Stock control 901 550 500 50
Jan 4 Drawings 902 100 100 0
Jan 5 Stock control 903 440 400 40
Jan 6 Wages 904 200 200 0
Jan 9 Advertising 905 88 80 8
Jan 11 Insurance 906 550 500 50
Jan 12 Creditor – T. Sports 907 140 140 0
Jan 13 Wages 908 200 200 0
Jan 16 Stock control 909 440 400 40
Jan 19 Drawings 910 150 150 0
Jan 20 Wages 911 200 200 0
Jan 24 Advertising 912 88 80 8
Cash Payments Journal
Date Details Cheque
Number
Bank Creditors
Control
Stock
Control
Advert-
ising
Wages Drawings Sundries GST
Jan 3 Stock control 901 550 500 50
Jan 4 Drawings 902 100 100 0
Jan 5 Stock control 903 440 400 40
Jan 6 Wages 904 200 200 0
Jan 9 Advertising 905 88 80 8
Jan 11 Insurance 906 550 500 50
Jan 12 Creditor – T. Sports 907 140 140 0
Jan 13 Wages 908 200 200 0
Jan 16 Stock control 909 440 400 40
Jan 19 Drawings 910 150 150 0
Jan 20 Wages 911 200 200 0
Jan 24 Advertising 912 88 80 8
Jan 27 Wages 913 200 200 0
Cash Payments Journal
Date Details Cheque
Number
Bank Creditors
Control
Stock
Control
Advert-
ising
Wages Drawings Sundries GST
Jan 3 Stock control 901 550 500 50
Jan 4 Drawings 902 100 100 0
Jan 5 Stock control 903 440 400 40
Jan 6 Wages 904 200 200 0
Jan 9 Advertising 905 88 80 8
Jan 11 Insurance 906 550 500 50
Jan 12 Creditor – T. Sports 907 140 140 0
Jan 13 Wages 908 200 200 0
Jan 16 Stock control 909 440 400 40
Jan 19 Drawings 910 150 150 0
Jan 20 Wages 911 200 200 0
Jan 24 Advertising 912 88 80 8
Jan 27 Wages 913 200 200 0
Jan 28 Drawings 914 100 100 0
Cash Payments Journal
Date Details Cheque
Number
Bank Creditors
Control
Stock
Control
Advert-
ising
Wages Drawings Sundries GST
Jan 3 Stock control 901 550 500 50
Jan 4 Drawings 902 100 100 0
Jan 5 Stock control 903 440 400 40
Jan 6 Wages 904 200 200 0
Jan 9 Advertising 905 88 80 8
Jan 11 Insurance 906 550 500 50
Jan 12 Creditor – T. Sports 907 140 140 0
Jan 13 Wages 908 200 200 0
Jan 16 Stock control 909 440 400 40
Jan 19 Drawings 910 150 150 0
Jan 20 Wages 911 200 200 0
Jan 24 Advertising 912 88 80 8
Jan 27 Wages 913 200 200 0
Jan 28 Drawings 914 100 100 0
Jan 31 Creditor – KSP 915 254 254 0
Cash Payments Journal
Date Details Cheque
Number
Bank Creditors
Control
Stock
Control
Advert-
ising
Wages Drawings Sundries GST
Jan 3 Stock control 901 550 500 50
Jan 4 Drawings 902 100 100 0
Jan 5 Stock control 903 440 400 40
Jan 6 Wages 904 200 200 0
Jan 9 Advertising 905 88 80 8
Jan 11 Insurance 906 550 500 50
Jan 12 Creditor – T. Sports 907 140 140 0
Jan 13 Wages 908 200 200 0
Jan 16 Stock control 909 440 400 40
Jan 19 Drawings 910 150 150 0
Jan 20 Wages 911 200 200 0
Jan 24 Advertising 912 88 80 8
Jan 27 Wages 913 200 200 0
Jan 28 Drawings 914 100 100 0
Jan 31 Creditor – KSP 915 254 254 0
Jan 31 Total payments 3700 394 1300 160 800 350 500 196
5.1 THE NEED FOR SPECIAL JOURNALS

9. © Michael Allison. Author’s permission required for external use.
Cash at Bank [A]
1/1 Balance 1200 3/1 Stock/GST 550
2/1 Sales/GST 66 4/1 Drawings 100
5/1 Debtors 80 5/1 Stock/GST 440
6/1 Capital 5000 6/1 Wages 200
10/1 Sales/GST 110 9/1 Advertising/GST 88
12/1 Sales/GST 66 11/1 Insurance/GST 550
14/1 Sales/GST 132 12/1 Creditors 140
14/1 Sales/GST 110 13/1 Wages 200
17/1 Debtors 200 16/1 Stock/GST 440
20/1 Sales/GST 154 19/1 Drawings 150
21/1 Interest 143 20/1 Wages 200
24/1 Sales/GST 99 24/1 Advertising/GST 88
28/1 Debtors 100 27/1 Wages 200
28/1 Drawings 100
31/1 Creditors 254
Cash Receipts Journal
Date Details Receipt
Number
Bank Debtors
Control
Cost of
Sales
Sales Sundries GST
Jan 31 Total receipts 6260 380 370 670 5143 67
Cash at Bank [A]
1/1 Balance 1200
Cash Payments Journal
Date Details Cheque
Number
Bank Creditors
Control
Stock
Control
Advert-
ising
Wages Drawings Sundries GST
Jan 31 Total payments 3700 394 1300 160 800 350 500 196
Cash at Bank [A]
1/1 Balance 1200
31/1 Cash receipts 6260
Cash at Bank [A]
1/1 Balance 1200 31/1 Cash payments 3700
31/1 Cash receipts 6260
Cash at Bank [A]
1/1 Balance 1200 31/1 Cash payments 3700
31/1 Cash receipts 6260
7460
Cash at Bank [A]
1/1 Balance 1200 31/1 Cash payments 3700
31/1 Cash receipts 6260
7460 7460
Cash at Bank [A]
1/1 Balance 1200 31/1 Cash payments 3700
31/1 Cash receipts 6260 31/1 Balance 3760
7460 7460
Cash at Bank [A]
1/1 Balance 1200 31/1 Cash payments 3700
31/1 Cash receipts 6260 31/1 Balance 3760
7460 7460
1/2 Balance 3760
5.1 THE NEED FOR SPECIAL JOURNALS

10. © Michael Allison. Author’s permission required for external use.
Advantages
Bulky detail is removed from the General
Ledger – the detail of each transaction is
recorded in the Special Journal
It is easier to balance each account in the
General Ledger as there are fewer entries
The total of each type of transaction can be
“posted” as one overall figure rather than as
many individual transactions
5.1 THE NEED FOR SPECIAL JOURNALS

11. © Michael Allison. Author’s permission required for external use.
TASK
In-class Homework
SQ1 X