The special journals is a process in which business transactions are recorded that occurs on most of the time or usual time, in the special journal each account is opened is separate journal and in that journal only one type of transactions are recorded.
There are many types of special journals in which the transactions are recorded of similar type such as cash transactions, cash receipts journal, cash payment journal, purchase journal, sales journal purchase return and allowance journal and other journals are maintained.
These types of special journals are only maintained by the those companies which are large in size (large in financial services as well) or who believes that they can bear such expenses for maintaining separate journals because it needs a separate staff such as accounts assistant who can maintain the records and hiring and additional staff meaning an increase in the expenses of the company.
But to maintain such journals and afford the burden of additional expenses leads to the good monitoring policy and effective internal control system which helps the company to detect and eliminate any kind of mistake that helps the auditor during the audit of the company.
Cash book is a kind of journal which is maintained almost by all kinds of businesses regardless of its sizes (tiny, small, medium and large), in the cash book the transactions are recorded of both such as payments and receipts in the most of the companies the two elements are combined and maintained in a single book which is known as cash book, but those companies who can afford these use to maintain separate journal for the cash receipts and cash payment.
Cash Receipts Special Journal is maintained to record the transactions of cash receipts or the sales only, when the company sales its products only in the cash receipts the transactions are recorded.
Whereas the Cash Payment Journal is a kind of special journal in which those transactions are recorded which are concerned with the payment only, when the company pays for anything the transactions are recorded in the cash payment receipts.
Purchases Journal is another special journal in which transactions regarding the purchase of machinery, equipment, inventory, merchandise or anything else is recorded only, for example if a company is purchasing a car or machinery for the company it is only recorded in purchases journal.
There is other journal regarding purchases is maintained which is known as purchases return journal which is separately maintained by the company.