Summary Accounting notes covering different transactions

Learning Unit 4
Recording cash transactions
Summary of journals
Name of journal Abbr. Type of transaction Source document used
to make an entry into the
particular journal
Cash book receipt CBR Any transaction that Duplicate cash slip (cash
causes the balance of register roll); duplicate
the current bank cash invoice; duplicate
account to increase receipt; supporting
document; duplicate bank
deposit slip
Cash book CBP Any transaction that Electronic funds transfer
payment causes the balance of (EFT) confirmation slip;
the current bank supporting document:
account to decrease original invoice, cash slip,
or receipt from supplier
Petty cash journal PCJ Purchases from the Petty cash voucher;
petty cash box supporting document:
original invoice, cash slip
or receipt from supplier
Creditors journal CJ Credit purchases of any Original credit invoice (a
product or service tax invoice with payment
terms)
Creditors CAJ Returns/rebates with Original credit note
allowance journal regard to transactions
previously entered into
the CJ
Debtors journal DJ Credit sales of trading Duplicate credit invoice
inventory only (a tax invoice with
payment terms)
Debtors allowance DAJ Returns/rebates with Duplicate credit note
journal regard to transactions
previously entered into
the DJ
General journal GJ Sundry transactions that Journal voucher
cannot be recorded in
any of the other journals


Cash Journals
 Cash book receipts (cash receipts journal)
 Cash book payments (cash payments journal)
 Since ‘bank’ is an asset account, the balance of this account will increase on the
debit side and decrease on the credit side

, Bank Account


+ -
Total cash receipts Total cash payments


First recorded in the cash book receipts First recorded in the cash book payments




Cash book receipts
 Structure of the cash book receipts
Do Day Details Fol. Analysis Bank Output Services Sale Sundry amount
c of VAT rendered s
no. receipts
Amount Fol. Details



Cost of sales
column here




Cash book payments
 Structure of cash book payments
Doc Day Name of payee Fol. Bank Input Trading Sundry amount
no. VAT Inventory
Amount Fol. Details


Petty cash journal
 Structure of petty cash journal
Doc Da Details Fol Petty Postage Staff Input Sundry amount
no. y . cash and refreshment VAT
stationery s
Amoun Fol. Details
t