What do you mean by Special journal?

Special journal is a journal that is used to record similar types of transactions.

Special journals are of various types, such as:

  1. Sales journal,
  2. Purchase journal,
  3. Cash Receipts journal,
  4. Payments journal. Etc.

Advantages of Special Journal

Special journals have several advantages. Such of them are as follows:

  • It accumulates similar entries in a single journal.
  • It makes very easy to post entries into the accounts.
  • It reduces the possibilities of errors in posting.
  • It permits greater division of labor.
  • It provides total amounts of same transactions.
  • It provides the chronology of same transactions.
  • It helps to control the accounts in the ledger.
  • It gives the priority of recurring transactions.
  • It classifies transactions into specific journals.

Disadvantages of Special Journal

Special journals have some disadvantages. Such of them are as follows:

  • It requires a higher knowledge about recording process.
  • It cannot record all types of transaction.
  • It is comparatively complex than general journal.
  • It requires some additional journals, such as memorandum journal, control
  • It records limited types of transactions.