Joomla TemplatesBest Web HostingBest Joomla Hosting
Home Journals Cash Payments Journal

Articles

Cash Payments Journal

The Cash Payments Journal records all cash payments. Cash may be paid out for/to cash purchases, trade creditors, other creditors, expenses, cash purchase of fixed assets, and investments. Credit purchases are not recorded in this journal.

 The cash payments journal as shown below has both debit (Dr) and credit (Cr) columns. The total of all the debit columns is equal to the total of all the credit columns. The totals of the two credit columns are credited to their respective accounts in the general ledger. The debit column totals are debited individually to appropriate accounts in the general ledger except the other accounts column. The other accounts column is for transactions that are not cash purchases or credit purchases. The transactions in this column are posted to individual accounts in the general ledger. 

Each cash payment made as in the cash column is posted to either the personal accounts of creditors in the purchases ledger/creditors ledger or appropriate accounts in the general ledger. In the table below, the amounts paid to Up Trading and Down & Co are debited to their accounts in the purchases ledger. Purchases and office desks are debited to the purchases and office furniture accounts in the general ledger.


Cash payments journal

Date Particulars Folio Cash Purchases Discount Rec'd A/c Payable Other A/cs
      Cr Dr Cr Dr Dr
Sep 09 Purchases    
2,400 2,400      
Sep 11 Up Trading  
1,240   60 1,300
Sep 19 Office desks
1,200    
  1,200
Sep 21 Down & Co   1,520   80 1,600  
  Total   6,360 2,400 140 2,900 1,200


Posting to General Ledger

Cash Account

Date Particulars Folio Amount
Date Particulars Folio Amount





20XX


$





Sep 30
Per Cash Book
CPJ9
6,360


Purchases Account

Date Particulars Folio Amount   Date Particulars Folio Amount
20XX              
Sep 30 Cash purchases
CPJ9 2,400  

   


Discounts Received

Date Particulars Folio Amount
Date Particulars Folio Amount





20XX


$





Sep 30
For month of Sep
CPJ9
140


Accounts Payable Account

Date Particulars Folio Amount
Date Particulars Folio Amount
20XX




 


Sep 30
Per Cash Book
CPJ9
2,900



 


Office Furniture Account

Date Particulars Folio Amount
Date Particulars Folio Amount
20XX




 

 
Sep 30
Office desks
CPJ9
1,200



   


Purchases Ledger

Up Trading

Date Particulars Folio Amount
Date Particulars Folio Amount
20XX







 
Sep 11
Cash
CPJ9
1,240



   
  Discounts CPJ9 60          


Down & Co

Date Particulars Folio Amount
Date Particulars Folio Amount
20XX




 

 
Sep 21
Cash
CPJ9
1,520



   
  Discounts CPJ9 80    



  <!--[endif]-->

Last Updated (Friday, 03 September 2010 16:04)