A summary of Cash Journals, including the Cash Receipts Journal, Cash Payment Journal and Petty Cash Journal. A format of all these journals is provided as well as what each column means.
This comprehensive summary is applicable to anyone in grade 8-12 Accounting as well.
Cash journals are used to keep track of the cash inflow and outflow of an entity to prevent
fraudulent activity.
Every cash transaction will be recorded in either one of the 3 cash journals, depending on
whether it’s an inflow or outflow, i.e. if it’s paid or received.
Cash Receipts Journal
The Cash Receipts Journal keeps track of all the cash coming into the entity (inflow).
Always think of the accounting equation, where Assets = Owner’s Equity + Liabilities.
In terms of the accounting equation, these income amounts are recoded in Owner’s Equity on
the credit side as an increase.
As this is an inflow of cash, Bank is an Asset and increases on the debit side.
, Format of Cash Receipts Journal
Name of entity
Cash Receipts Journal for the (insert month and year)
Doc Day Details Fol Analysis Bank Sales Debtors VAT Sundry Accounts
no. of control output
receipts 10
Amount Fol Details
1 2 3 4 5 6 7 8 9
1. Source document number.
2. Day the transaction took place.
3. Name of the source the money is received from.
4. Folio is used for cross reference.
5. Money in the cash register/till and taken to the bank daily. This amount doesn’t form part
of accounting entries, it’s just used for internal control purposes and represents the cash
register.
6. Money deposited into the bank account of the entity daily (where VAT is applicable, this
amount will be inclusive of VAT i.e. 115%)
7. Money for sales (where VAT is applicable, this amount will be exclusive of VAT i.e. 100%)
8. Money received from debtors as settlement of their account.
9. This is the VAT levied on sales payable to SARS (where VAT is applicable, this amount will
be the amount of VAT i.e. 15%)
10. Used to record any transaction that isn’t provided in the columns. Usually these don’t
have a column as they don’t occur frequently.
Note: where money was received directly into the bank account, therefore where an invoice
number is not issued, the Document number is B/S (stands for Balance Sheet) and the analysis
of receipts will not have an amount, only the Bank column will reflect the payment.
Remember, the analysis of receipts is money in the cash register which is later taken to the bank
account. Money sent straight to bank account will already be in the bank account, hence no
analysis of receipt.
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