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Business firms of smaller size may record all their transactions in the journal, but in practice most of the firms record their transactions in subsidiary books including cash book. If the transaction does not find a place in the subsidiary books, it is recorded in the journal proper. There are certain transactions, which cannot be recorded in either of the subsidiary books, such as purchases of furniture on credit. If it would have been cash purchases of furniture, it would have been recorded in the cash book. As purchases book records credit purchases of goods only, so the purchases of furniture, an asset will not be shown in the purchases book. The purchases of furniture will thus be recorded in the journal proper. The following transactions are recorded in the journal proper:

  1. Opening entries
  2. Closing entries
  3. Adjusting entries
  4. Rectifying entries
  5. Transfer entries
  6. Special items, which do not find a place in any subsidiary book:

(a)    Purchases of assets on credit
(b)   Sales of assets on credit
(c)    Interest on capital
(d)   Goods taken by the proprietor for personal use
(e)    Goods given as charity or free sample
(j) Loss of goods
(g) Endorsement and dishonor of bills.