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Chapter 2 Introduction To Transaction Processing 03

This document introduces key concepts in transaction processing including journals, special journals, registers, general journals, and ledgers. Journals record transactions chronologically while ledgers show activity by account type. Special journals are used to efficiently record high volumes of similar transactions like sales. Registers are types of special journals or logs that record items like payroll, receipts, and shipments. General journals record nonrecurring transactions and have been replaced by journal vouchers in most organizations. The general ledger summarizes activity for each account from journal vouchers and other sources.

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Marklein Dumangeng
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51 views1 page

Chapter 2 Introduction To Transaction Processing 03

This document introduces key concepts in transaction processing including journals, special journals, registers, general journals, and ledgers. Journals record transactions chronologically while ledgers show activity by account type. Special journals are used to efficiently record high volumes of similar transactions like sales. Registers are types of special journals or logs that record items like payroll, receipts, and shipments. General journals record nonrecurring transactions and have been replaced by journal vouchers in most organizations. The general ledger summarizes activity for each account from journal vouchers and other sources.

Uploaded by

Marklein Dumangeng
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Chapter 2 Introduction to Transaction Processing

Journals

- A journal is a record of a chronological entry. At some point in the transaction process, when all
relevant facts about the transaction are known, the event is recorded in a journal in chronological
order.

SPECIAL JOURNALS

- Special journals are used to record specific classes of transactions that occur in high volume. Such
transactions can be grouped together in a special journal and processed more efficiently than a
general journal permits. Figure 2-6 shows a special journal for recording sales transactions.

REGISTER

- The term register is often used to denote certain types of special journals. For example, the payroll
journal is often called the payroll register. We also use the term register, however, to denote a
log. For example, a receiving register is a log of all receipts of raw materials or merchandise
ordered from vendors. Similarly, a shipping register is a log that records all shipments to
customers.

GENERAL JOURNALS

- Firms use the general journal to record nonrecurring, infrequent, and dissimilar transactions. For
example, we usually record periodic depreciation and closing entries in the general journal.
- As a practical matter, most organizations have replaced their general journal with a journal
voucher system. A journal voucher is actually a special source document that contains a single
journal entry specifying the general ledger accounts that are affected. Journal vouchers are used
to record summaries of routine transactions, nonroutine transactions, adjusting entries, and
closing entries. The total of journal vouchers processed is equivalent to the general journal.
Subsequent chapters discuss the use of this technique in transaction processing.

Ledgers

- A ledger is a book of accounts that reflects the financial effects of the firm’s transactions after
they are posted from the various journals. Whereas journals show the chronological effect of
business activity, ledgers show activity by account type. A ledger indicates the increases,
decreases, and current balance of each account. Organizations use this information to prepare
financial statements, support daily operations, and prepare internal reports.

GENERAL LEDGERS

- The general ledger (GL) summarizes the activity for each of the organization’s accounts. The
general ledger department updates these records from journal vouchers prepared from special
journals and other sources located throughout the organization.

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