SS1 Second Term Financial Accounting Lesson Note – Other Types of Journal and Classification of Accounts

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WEEK 2                             

TOPIC:  Other Types of Journal and Classification of Accounts

OTHER TYPES OF JOURNALS

These Journals are called Books of Original Entries or Subsidiary Books or Prime Books.

Apart from the General journal mentioned and explained above, there are other journals such as:

1. Sales Journal for recording credit sales
2. Purchases Journal for recording credit purchases
3. Return inward Journals for recording returns from customers
4. Return Outward Journals for recording returns to suppliers

SALES JOURNAL

This is a subsidiary book that records credit sales of goods to customer in detail. Sales journals are usually entered from the sales invoice. Another name for sales Journal is Sales Day Book.

PURCHASES JOURNAL

This is a subsidiary book that records credit purchase of goods from suppliers in detail. Purchase journals are usually entered from purchase invoice. Another name for purchases Journal is Purchases Day Book

RETURN INWARD JOURNALS

This is the subsidiary books that records returns of good sold on credit to the customers. It is also referred to as Sales Returns Journals. A Credit Note is usually issued or sent by the seller to the customer as evidence of sales returns.

RETURN OUTWARD JOURNALS

This is the subsidiary books that records returns of goods bought on credit to the suppliers. It is also called Purchases Return Journals. A Debit Note is usually received by the suppliers as an evidence of return.

POSTING TRANSACTIONS FROM SUBSIDIARY BOOKS TO THE LEDGER

Sales Journals or Sale Day Book

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