200k views
1 vote
What is the purpose of special journals? In what ways do they simplify the recording process?

Option 1: Special Journals Purpose
Option 2: Recording Simplification
Option 3: Journal Types
Option 4: Accounting Efficiency

1 Answer

7 votes

Final answer:

The purpose of special journals in accounting is to simplify the recording process by categorizing and summarizing similar transactions. The correct answer is option (2).

Step-by-step explanation:

The purpose of special journals in accounting is to simplify the recording process by categorizing and summarizing similar transactions. Special journals are used for specific types of transactions, such as sales, purchases, cash receipts, and cash disbursements.

By using special journals, repetitive transactions can be recorded in a systematic and efficient manner, which makes the overall accounting process easier.

For example, a company can have a sales journal where all sales transactions are recorded.

Instead of recording each sales transaction individually in the general journal, which would be time-consuming, the company can record them in the sales journal in a summarized form, with columns for the date, customer name, sales amount, and other relevant information.

Overall, special journals help simplify the recording process by reducing the amount of detail that needs to be recorded in the general journal and providing a systematic way to categorize and summarize similar transactions.

User Abinet
by
8.5k points