A memorandum journal is a type of journal in accounting that is used to record transactions that are not significant enough to be recorded in a regular journal. A memorandum journal is a supplementary record-keeping tool that is used to record minor transactions or transactions that do not fit into any of the other regular journals.
In accounting, a journal is a record of financial transactions that lists the transactions in chronological order. There are several types of journals, such as the general journal, which is used to record all types of transactions, and specialized journals, such as the sales journal and the purchases journal, which are used to record specific types of transactions.
The memorandum journal is used to record transactions that do not fit into any of the other regular journals. For example, if a business makes a small payment to a supplier that is not large enough to be recorded in the purchases journal, it might be recorded in the memorandum journal. The memorandum journal is used to keep track of these minor transactions so that they can be properly recorded and accounted for.
