ACCOUNTING

FOR CASH

CASH RECEIPTS
JOURNAL
The Cash Receipts Journal (CRJ) summarises all CASH
received.
Cash can be received in the form of:
- money (notes and coins)
- cheques
- money orders
- direct deposits
- EFTPOS (Electronic Fund Transfer at Point Of Sale)
The Cash Receipts Journal records the receipt of cash
(in any of the above forms) by the business. It
classifies like items together and acts as an aid for
posting to the Ledger by analysing cash receipt
transactions into their Dr and Cr components.

CASH RECEIPTS
JOURNAL
Receipt
(duplicate)
Sales
Docket

The source documents

that are the basis for
entry into the Cash
Receipts Journal
Cash Register
Slip/Docket
(CRS) Debit/Credit
Card
VoucherReference
numbers from
phone & Internet
Banking
Bank
Statement

CASH
RECEIPTS
JOURNAL

CASH RECEIPTS
JOURNAL
NOTE:
Businesses vary in type and structure,
so their particular requirements differ
considerably.
The source documents and their
analytical requirements also vary
widely.
Each business customises its CRJ to
meet its specific requirements.

CASH RECEIPTS JOURNAL

HELPFUL TIPS
The bank statement may reveal additional receipts.
All entries in the CRJ include Dr to the bank / Cr to all
other accounts
All inventories returned are recorded at the amount
refunded to the business, that is, the ORIGINAL SALES
PRICE PLUS GST. The COST PRICE component of this
transaction is recorded in the GJ.
When more than one transaction occurs on any one day,
the total of the cash banked is entered in the Dr (bank)
column.
Check that the total of the Cr columns equals the total of
the Dr column (bank).
EFTPOS sales are entered into the bank column
separately because the bank settles EFTPOS entries at

CASH PAYMENTS JOURNAL

The Cash Payments Journal (CPJ) summarises
payments of CASH for accounting purposes.

all

Cash can be paid in the form of:

- money (notes and coins)
- cheques
- money orders
- direct payments (automatic)
- EFTPOS (Electronic Fund Transfer at Point Of Sale)
The Cash Payments Journal records all payments made
by the business (in any of the above forms). It
classifies like items together and acts as an aid for
posting to the Ledger by analysing cash receipt
transactions into their Dr and Cr components.

CASH PAYMENTS JOURNAL

The source documents
that are the basis for
entry into the Cash
Payments Journal

Cheque butts or
copies
ofcheques

CASH
PAYMENTS
JOURNAL

Bank Statements
Direct debit
authorisations
& credit
vouchers
Money order
slips

CASH PAYMENTS JOURNAL

NOTE:
As with the CRJ, businesses vary in type
and structure, and therefore in their
analytical requirements as well.
Each business customises its CPJ to
reflect its specific requirements.

CASH PAYMENTS JOURNAL

HELPFUL TIPS
The bank statement may reveal additional payments.
All entries in the CPJ include Cr to the bank / Dr to all
other accounts.
All sales returns are recorded at the amount refunded to
the customer, that is, the ORIGINAL SALES VALUE PLUS
GST. The COST PRICE component of this transaction is
recorded in the GJ.
Check that the total of the Dr columns equals the total of
the Cr column (bank).

COST OF GOODS SOLD

When goods (inventory) are sold, two values/entries
must be recorded:
1. the purchase price of the goods bought (cost from
supplier)
2. the selling price of the goods sold (sales to customer)
When entries are made in the sales column of the CRJ at
selling (sales) price, a further entry is required in the
general journal for the purchase (cost) of the goods
bought. The cost of these goods to the business is
calculated from their inventory records.
EXAMPLE
Purchase price (cost price from a supplier) is $500
Selling price (sales price to a customer) is $1,100

COST OF GOODS SOLD

COST OF GOODS SOLD

HELPFUL TIPS
Record the selling price (sale price to the customer) of the
inventories sold for cash in the CASH RECEIPTS JOURNAL
Record the cost price (purchase price from the supplier) of
the inventories sold in the GENERAL JOURNAL

GENERAL JOURNAL vs CASH

JOURNALS
The general journal and cash journals (CRJ & CPJ) are both useful instruments for
recording transactions. There are differences between these two books of original
entry. Each journal can be used by businesss with varying requirements.

GENERAL JOURNAL

CASH JOURNALS

SIMILARIT
IES

Analyses transactions into

DR & CR components
(double-entry system)

Analyses transactions into

DR & CR components
(double-entry system)

DIFFEREN
CES

Can only post individual

Post the summarised
transactions to the ledger
totals of most
Identifies & records each
transactions to the ledger
entry without totals or any Identifies, classifies &
classification of
totals:
transactions
- Sales of inventories
May include all
- Purchases of
transactions
inventories
- Acc Receivable
receipts
- Acc Payable

STUDENT APPLICATION

Complete
Exercises
3.1 3.7