10. Special Journals

Question 1

Name the 4 special journals

Answer 1

Purchases Journal, Sales Journal, Purchases Returns Journal, Sales Returns Journal

Question 2

State purpose of purchases journal

Answer 2

To record the credit purchase of inventory

Question 3

State purpose of sales journal

Answer 3

To record the credit sales of inventory

Question 4

State purpose of sales returns journal

Answer 4

To record the return of inventory by credit customers

Question 5

State purpose of purchases returns journal

Answer 5

To record the returns of inventory to credit suppliers

Question 6

Name the document used to record purchases journal

Answer 6

Invoices (received)

Question 7

Name the document used to record sales journal

Answer 7

Invoices (issued)

Question 8

Name the document used to record purchase returns journal

Answer 8

Credit notes (received)

Question 9

Name the document used to record sales returns journal

Answer 9

credit notes (issued)

Question 10

State where the total of purchases journal is posted to

Answer 10

Inventory account & trade payables control account

Question 11

State where the total of sales journal is posted to

Answer 11

Sales revenue account & trade receivables control account

Question 12

State where the total of sales returns journal is posted to

Answer 12

Sales returns account &trade receivables control account

Question 13

State where the total of purchases returns journal is posted to

Answer 13

Inventory account & trade payables control account

Question 14

Give an advantage of keeping special journals

Answer 14

1. Allows transactions of the same kind to be recorded in the same book for better organisation and easier information retrieval
2. Prevents overcrowding of entries in general journal and general ledger

Question 15

Name the discount shown in purchases journal

Answer 15

Trade discount

Question 16

Name the discount shown in purchases returns journal

Answer 16

Trade discount

Question 17

Name the discount shown in the sales journal and sales returns journal

Answer 17

Trade discount