Cash Journals

Question 1

What are cash journals?

Answer 1

Cash journals are records for cash receipts and cash payments.

Question 2

How are transactions recorded in cash journals?

Answer 2

Transactions are entered into columns according to the double entry rule: once in the ‘Main’ column and once in another column representing the reason for the receipt or payment.

Question 3

What additional information is recorded with each transaction?

Answer 3

Additional information includes the date of transaction, other persons or businesses involved, and the source document number.

Question 4

Where are cash receipts recorded?

Answer 4

All transactions where cash is received are recorded in the Cash Register journal (CR).

Question 5

What sources provide information for the Cash Register journal?

Answer 5

Information is gained from duplicate receipts (Rec) or Cash Register Rolls (CRR, CRT, or CS) and bank statements.

Question 6

How do you enter amounts into the Cash Register journal?

Answer 6

For a Rec, CRR, CRT, or CS, enter the amount received once in the Analysis of Receipts column and once in another column. For a bank statement, enter the amounts received in the Bank column and once in another column.

Question 7

What should be done at the end of each day in the Cash Register journal?

Answer 7

At the end of each day, draw a line across the Analysis of Receipts column and write the total received that day into the Bank column. This amount will be the same amount deposited into the bank for the day.

Question 8

How are cash payments recorded?

Answer 8

All transactions where money is paid are recorded in the cash payment journal.