Cash Payments Journal

Posted by Professor Cram in Special Journals

Special Journals

In a typical 2-column manual accounting system, transactions are entered as debits to one (or more) account and balancing credits to one (or more) account. If you consider some recurring transactions (such as sales) that will hopefully occur many times during an accounting cycle, all this double entry can add up to a lot of work. That's where special journals come into play.

Special journals are designed as a simple way to record a single type of frequently occurring transaction. The types of special journals depends on the nature of the business, but a few types are frequently seen in businesses that rely on manual accounting procedures:

Cash Payments Journal

The Cash Payments Journal is used to record all cash payments made by a company. (Credit purchases are not recorded here, they belong in the purchases journal.)

All transactions in the cash payments journal involve the disbursement of cash, so you'll find a column for crediting cash (Cash CR.). There is also a credit column for purchases discounts in case the transaction involves a discounted purchase.

To balance these credits, you'll find two debit columns. Accounts Payable is the account most likely to be involved in these transactions (besides cash). The column for Other Accounts is for all other types of cash-payment transactions that don't involve accounts payable.

See the columns available in the Cash Payments Journal in Figure A below. (To see Figure A, click the A button in the flash program at the bottom of this page. This is where you'll find all the figures for this tutorial.)

Cash Payments Journal Examples

Consider the following transactions for your cash payments journal:

  • Paid $455 for office equipment;
  • Paid $1,200 for purchases;
  • Paid $2,000 to Supplier A against accounts payable, taking a purchases discount of $225;
  • Paid $1,125 for purchases;
  • Paid $765.50 to Supplier B against accounts payable.

These transactions are posted in the cash payments journal as shown in Figure A below.

Posting from the Cash Payments Journal

The column values are posted in their own separate ways:

  • Transactions from the Other Accounts column should be posted individually in the general ledger, as shown in Figure B and Figure C below. (The account number for the general ledger account is placed in the posting column of the Cash Payments Journal.)
  • NOTE: You could combine the two Purchases entries in Figure C below into a single general ledger posting, but keeping them as separate entries will make it easier later on in case you have to hunt down any difficulties (such as balancing an unbalanced trial balance).
  • When you record cash payments against accounts payable, you should post individual transactions as debits to the supplier accounts in the accounts payable ledger. The accounts payable total at month's end is then posted in the general ledger, as shown in Figure D below.
  • Purchases discounts should be posted as a single Purchases Discounts credit total in your general ledger, as shown in Figure E below. (These should also be posted as credits to the corresponding supplier account in the accounts payable ledger).
  • Cash should be posted as a single credit total in your general ledger, as shown in Figure E below.

Cash Payments Journal Illustrations

The Cash Payments Journal is a special journal designed to record a single type of frequently occurring transaction — in this case, cash payments. This tutorial cover the concept of the cash payments journal from the original transactions through the posting process.

The Flash plugin is required to view this object.

Share

Comments

22 Responses to “Cash Payments Journal”

  1. drew says:

    under what circumstances would i increase a cash payment journal column?

  2. mitch says:

    love it, cheers for the info

  3. Britney says:

    Love this website totally helpful.thanks!

  4. money making says:

    Today, while I was at work, my cousin stole my iphone and tested to
    see if it can survive a forty foot drop, just so she can
    be a youtube sensation. My apple ipad is now broken and she has 83
    views. I know this is totally off topic but I had to share it with someone!

  5. idea for free advertising says:

    Excellent article. Keep writing such kind of information on your
    page. Im really impressed by it.
    Hello there, You’ve performed an incredible job. I’ll certainly digg it
    and in my opinion suggest to my friends. I am confident they’ll be benefited from this web site.

  6. www.pinterest.com says:

    I think everything posted made a lot of sense. However, whuat
    about this? what iff you were to write a killer headline?
    I am not saying your information iss not solid., however suppose you added a headline that
    makes people desire more? I mean Cash Payments Joural | Accounting:
    Special Jornals | College-Cram.com is a little plain. You might glqnce at Yahoo’s home pagye and watchh how they create article titles
    to grab viewers to open the links. You might add a video
    or a pic or two to grab readers interested about whawt you’ve got to say.
    Juust my opinion, it could bring your blog a little livelier.

    Feel free to surf to my blog; mehndi (http://www.pinterest.com)

  7. Darin says:

    What’s Taking place i am new to this, I stumbled upon this I have found It absolutely helpful and it has aided me out loads.
    I’m hoping to contribute & assist other customers like its aided me.
    Good job.

  8. not fake says:

    They are already waiting for the special envoy that’s officially appointed by
    Yudhoyono to go to Papua and prepare just how for constructive communication not fake private colleges
    normally have additional money for students that schools can sometimes actually
    are cheaper.

  9. link vao m88 says:

    This post will help the internett visitors foor creating new blog
    or even a blog from start to end.

    my web page – link vao m88

  10. m88 says:

    Hi, i feel that i noticed you visited my website so i got here to return the choose?.I’m trying
    to iin finding issues to enhance my website!I assumke its
    adequate to use a few of your ideas!!

    my bblog post; m88

  11. garrys mod download for pc says:

    Electronic chess download garry’s mod versus video games for quite some time.

    Improved download garry’s mod LogicLogical thinking is that the company first.
    If you enjoy the games to full commercial PC games, generate and number free hockey video
    games. If you have $20 when you can find a videogame that
    meets the interest. Make sure to hit the market.
    Stay in the video game play. Nonetheless, you can pick the right
    pages at eBay.

    Feel free to visit my page garrys mod download for pc

  12. m88 asia says:

    Paragraph writing is als a fun, if you be familiar with after that you can write or else it iss complicated to write.

    Feeel free to vixit my website; m88 asia

  13. Brooks walking shoes addiction says:

    The women’s can be found in sizes 6 to 12 and prices start at $119.

    Another plus of drinking lots of water is, it makes you are feeling full
    so you don. You could get some fantastic discounted offers, delivered directly to
    your inbox.

  14. download adobe flash player says:

    An interesting discussion is worth comment. I believe that you should
    write more about this subject matter, it may not be a
    taboo matter but typically people don’t speak about these topics.
    To the next! Many thanks!!

    Feel free to surf to my blog download adobe flash player

  15. free money system review says:

    and i will visit again your website for your news

  16. teenyweenyurl.com says:

    Hey there! Do you use Twitter? I’d like to follow you
    if that would be okay. I’m definitely enjoying your blog and
    look forward to new updates.

    Feel free to surf to my page Oxford Circus Massage (teenyweenyurl.com)

  17. angry birds friends cheats says:

    The main reason for most of the Internet access angry birds friends hack
    through which the users. 0 or later computer with the world.
    A mobile phone angry birds friends hack itself. This page
    is the use of it day by day. The player selects a Paper Plane apps for their very own Android handset, but as a programming language or platform
    you choose which applications you have to hit
    $1. It’s not full artificial intelligence, but you should understand a lot of people.

    My blog post – angry birds friends cheats

  18. brave frontier hack cydia says:

    Very similar to the store has an influence brave frontier hack on memorization. For those brave frontier
    hack of you too interested in Nintendo Power strategy
    guide by my husband it is backed up. Still, it permits you to play I continue to see the sunlight again. What you need
    an ISK guide you. You will find that there is a recipe section that you are now being
    made these online reincarnations are quite intelligent, sharp and active.

    My website; Brave frontier hack cydia

  19. subway surfers cheats android says:

    However, most of subway surfers cheats your virtual life.
    Of course we could ever forget Chrono Trigger.

    My page – subway surfers cheats android

  20. Nature's Smile reviews says:

    This design is steller! You most certainly know how to keep a reader amused.
    Between your wit and your videos, I was almost moved to start my own blog (well, almost…HaHa!) Fantastic
    job. I really enjoyed what you had to say, and
    more than that, how you presented it. Too cool!

  21. m88 says:

    Its not my first timne tto visit his website, i am browsing this web site dailly and
    gget fastidious facts from here daily.

    Have a look at my homepage: m88

  22. m88 says:

    What a stuff off un-ambiguity annd preserveness of precious know-how on tthe
    topic of unpredicted emotions.

    My webpage :: m88

Leave a Reply

Get More Help!

Click one of these links to get more help from another Cramlet in this same chapter: