Learning ACC 4 - ACC1102 PDF

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ACC1102...

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1.

Identify which journal should be used to record each of the following transactions?

A. Adjusting entry to record depreciation - general journal B. Purchase of baking equipment on credit - purchases journal C. Sale of merchandise on credit - sales journal D. Sale of merchandise for cash - cash receipts journal E. Cash refund to a customer who returned a product that was purchased - cash disbursements journal F. Return of merchandise to a vendor that was damage - general journal G. Payment of property taxes - cash disbursements journal H. Purchase of a delivery van for cash - cash disbursements journal I. Purchase of merchandise on credit - purchases journal

2. Explain how special journals can benefit accounting personnel. A special journal is a part of a company’s accounting ledger that represents specific business transactions. Usually the companies using four types of special journals such as: Sales, purchases, cash receipts and cash disbursements. Each special journal is made up of specific accounts that are used to record specific, individual financial transactions (Vitez, 2020). There are many benefits of special journals and I will write about some of them briefly. 1- Better internal control: the journals allow the work to be divided between the employees which will lead to not having any conflict in responsibilities. 2- Time savings: the special journals can be done by a number of employees simultaneously rather than one employee which will reduce the time of recording the transactions. 3- Savings in book-keeping expenses: when the transactions of same nature is recorded in one line this will result in saving in book-keeping expenses and labor. 4- Future references: when the transactions of similar nature are recorded in one journal it will make it easy to find them in the future. 5- Increase in efficiency: by using the special journals the work of recording business transactions can be assigned to several employees who will become more familiar with their work. It is like the division of labor that increases the efficiency of book-keepers or accountants.

6- Reduction in errors: as mention before each special journal is handled by a particular employee who will become familiar with the work assigned to him. This may result in a reduction of book-keeping errors.

7- And there are more benefits for special journal such as reduction in detailed recording and posting (Rashidjaved, 2016).

3. Explain what you have learned about companies using special journals.

I’ve learned that larger the business is more volume of transactions that they will need to be recorded and processed by the company’s accounting information system. So, recording all transactions to the general journal makes it difficult to find the needed information for a single customer. The use of special journal and subsidiary ledgers make the accounting information system more effective and allow for certain types of information to be obtained more easily for the companies.

4. What information covered in Unit 4 interest you most and why? The most interesting part of Unit 4 was analyzing and journalizing transactions using special journals. And knowing the differences between the four types of special journals which is sales journal, cash receipts journal, purchases journal, and cash disbursements journals. Also, I was having a different idea about disbursements journals but after reading the textbooks I knew that this journal is used to post all the bill payments which was an interesting information for me. Also, I’ve learned the importance of using special journals for the companies and the benefit of using such journals.

References: Rashidjaved. (2016, May 16). What are special journals? https://www.playaccounting.com/explanation/sj-exp/what-are-special-journals/.

Vitez, O. (2020, November 17). What is a Special Journal? https://www.wise-geek.com/what-isa-special-journal.htm....