How The Transactions Are Entered In Special Journals And Posted To The Ledger?

Here are some documents and terms detail which are very helpful to understand the procedure of recording and posting.Documents for sales and purchases.The Invoice: Every business transaction begins with an original document. Purchases and sales begin with the documents known as "Invoices" and purchases returns and sales returns are acknowledged by a "Credit Note". In every case it is the seller who makes out the document, sending one copy to the other party in the transaction.

Debit Note: If goods bought on credit are returned to the seller for any solid reason, the buyer debits the seller account and informs the seller thorough a note. This note is called 'Debit Note'.
Credit Note: If goods sold on credit are returned by the buyer, the seller credits the buyer account and informs the buyer through a note. This note is called 'Credit Note'. In a word, Debit Note or Credit Note is nothing but an intimation of having debited/credited the buyer/seller account. Details of goods returned, reasons for return etc. are written on the note.

Purchases Journal: When a businessman places an order for goods that he needs, the seller of the goods (supplier) makes out an invoice.  The top copy (first copy) of this invoice is received by the purchaser and is recorded in the Purchase Journal. There may be several of these invoices arriving every-day, possibly as many as ordered. The will all be the top copies of other selling firm's invoices and the Purchase Journal will be written on the basis of these invoices.