Cash Receipts Journal
Cash receipts journal is used to record all receipts of cash.
Cash receipts can be separted into one of three types:
Cash from credit customers in payment of their accounts
Cash from cash sales
Cash from other sources
Slide Two: Cash Receipts Journal Continued
Cash from credit customers: mean to record cash received in payment of a customer's account, the customer's name is first entered in the Account Credited.
Cash Sales : The amount for each cash sale is entered in the Cash Dr. colum and the Sales Cr column.
Cash from other sources : Examples of cash from other sources are mone borrowed from a bank.
Slide Three : Purchases Journal
Purchases journal : is used to record allcredit purchases, including those for inventory. Purchases for cash are recorded in the Cash Disbursement Journal.
Items in the purchases journal reflects purchase invoice and or other source documents. Accounts Payable column is used to record amounts owed to each creditor. Inventory purchases are recorded in the Inventory column.
Posting: Is when the amounts in the Accounts Payable column are then posted to the indivdual creditor accounts in the accounts payable ledger. At the end, all column totals except the Other Accounts column are posted.
Slide Four : Proving the Ledger
Accounts payable balances in the subsidary ledger can be shown after posting.
The subsidary ledger is proven by creating a schedule of accounts payable. Which is a list of accounts from the accounts payable ledger; showing their balances and the total.
If the total of the indivdual balance equals the balance of the Accounts Payable account, then the account in the accounts payable ledger are correct.