What is a Standard Journal? | Corporate Wala | Interview Questions and Answers

Out of the given options, the option that is not a standard journal is ‘Profit in Sale of Fixed Assets’. Here's why:
• Sales, Purchase, and Payments represent standard journals used to record routine transactions in a business. They have established procedures and accounts for each type of transaction.
• Profit in Sale of Fixed Assets, however, is not a typical transaction and involves a combination of different accounts (gain on sale, accumulated depreciation, and asset value). It's also a non-recurring event (selling an asset) and doesn't follow the established procedures for standard journals.
Here's a breakdown of why the other options are considered standard journals:
• Sales Journal: Records all credit sales made to customers.
• Purchase Journal: Records all purchases of goods or services from suppliers on credit.
• Payments Journal: Records all cash payments made for various expenses or purchases.
Therefore, while "Profit in Sale of Fixed Assets" impacts the financial statements, it's not classified as a standard journal due to its unique nature and the combination of accounts involved.