Sample
Summaries after sample
, T9: What are Cash Journals (CJs)?
T8: Transactions
• 2 types are used – Cash Payments Journal (CPJ)
and Cash Receipts Journal (CRJ). • Takes place when money is exchanged between
Cash Receipts Journal • a business and another party.
• Recorded on a source document (SD).
• Records all cash received. •
• Uses info from SDs.
• Journals
• Summarise similar transactions.
SDs used to complete the CRJ
• Decrease the number of transactions
T8: The accounting
• Receipt - take place for rent, donations and recorded in the General Ledger.
cycle •
Sample
commission/capital received.
• Cash register roll - used for services. T9: CRJ of a services
• Cash invoice issued - issued when the business General Ledger (GL)
doesn’t have a cash register.
business
• Bank statements - shows the money in the • Double-entry principle – for every transaction
bank account. entered on the debit side, the same transaction must
Summaries after sample
• Deposit slip - completed at the end of the day. be entered on the credit side of another account.
• • Posting from the CPJ and CRJ to the GL occurs when
transaction info is transferred from a journal to the
GL using the double-entry principle.
Closing off the CRJ •
• The bank column must equal the sum
of the other columns. Trial Balance
• • Ensures the GL has been drawn up accurately.
• Debit balances should equal credit balances.
Importance and purpose of Cash •
Journals (CJs) of a service business
• CJs show date, invoice/receipt/EFT, who
Income Statement and Balance Sheet
received it, the amount and the reason.
• Income Statement – all income minus expenses.
• CJs are a quick reference if tracing a transaction
• Balance Sheet shows net profit/loss on an
and controls receipts/ payments.
Income Statement + all Balance Sheet accounts
• on Trial Balance.
•
GR8 ACC T2 Mind Map Study & Master Copyright © www.summariessa.co.za (DO NOT COPY)
Summaries after sample
, T9: What are Cash Journals (CJs)?
T8: Transactions
• 2 types are used – Cash Payments Journal (CPJ)
and Cash Receipts Journal (CRJ). • Takes place when money is exchanged between
Cash Receipts Journal • a business and another party.
• Recorded on a source document (SD).
• Records all cash received. •
• Uses info from SDs.
• Journals
• Summarise similar transactions.
SDs used to complete the CRJ
• Decrease the number of transactions
T8: The accounting
• Receipt - take place for rent, donations and recorded in the General Ledger.
cycle •
Sample
commission/capital received.
• Cash register roll - used for services. T9: CRJ of a services
• Cash invoice issued - issued when the business General Ledger (GL)
doesn’t have a cash register.
business
• Bank statements - shows the money in the • Double-entry principle – for every transaction
bank account. entered on the debit side, the same transaction must
Summaries after sample
• Deposit slip - completed at the end of the day. be entered on the credit side of another account.
• • Posting from the CPJ and CRJ to the GL occurs when
transaction info is transferred from a journal to the
GL using the double-entry principle.
Closing off the CRJ •
• The bank column must equal the sum
of the other columns. Trial Balance
• • Ensures the GL has been drawn up accurately.
• Debit balances should equal credit balances.
Importance and purpose of Cash •
Journals (CJs) of a service business
• CJs show date, invoice/receipt/EFT, who
Income Statement and Balance Sheet
received it, the amount and the reason.
• Income Statement – all income minus expenses.
• CJs are a quick reference if tracing a transaction
• Balance Sheet shows net profit/loss on an
and controls receipts/ payments.
Income Statement + all Balance Sheet accounts
• on Trial Balance.
•
GR8 ACC T2 Mind Map Study & Master Copyright © www.summariessa.co.za (DO NOT COPY)
