Special journals are designed as a simple way to record the most frequently occurring transactions.
Provides a chronological record of all credit sales made in the life of a business.
Credit sales are transactions where the goods are sold and payment is received at a later date.
The source documents for the Sales journal are copies of all invoices given to the debtors.
Double entry Accounting is achieved by: Choose credit sales journal if this stock is then on-sold to customers who will pay later.
When a transaction occurs between a business and an external party, a source document will usually be created.
[4] Source documents are business forms that provide evidence of each transaction and give the details that are entered later into one of the journals in a computer accounting system.
[5] The folio number is used as a cross reference between the journal and the ledger accounts.
The use of folio numbers makes it easy to refer back from the ledger account to the journal entry or forward from the journal entry to the ledger account.
In addition, folio numbers are a check that all journal entries have been recorded in the ledger system.
The name and page of the journal from which the ledger entry came is recorded in the folio number column.