The 7 Journals

Cash Journals

100

Name the two Cash Journals.

Cash Receipts and Cash Payments

200

Which Journal does the following transaction belong?

"Issued cheque no 34 to Sapati for goods purchased"

Cash Payments Journal

300

Name one of the columns which appears in both Cash Receipts and Cash Payments.

Date, Particulars, Bank, Sundry

400

What do you debit and credit in the two Cash Journals?

Cash Receipts:
Dr Bank and Discount Allowed
Cr All other Accounts

Cash Payments:
Dr All other Accounts
Cr Bank and Discount Received

500

Explain why businesses record cash receipts and cash payments separately.

It is easier to track finances this way. When payments are recorded separately from receipts, it is a lot easier for businesses to identify which area are they paying more money on. As a result, they find managing their outflows of cash way easier

Credit Journals

100

Name the two journals which deal with invoices.

Sales and Purchases Journals

200

Which Journal does this transaction belong, "Issued invoice to Sina Afoa for $500"

Sales Journal

300

Which journal records credit notes received?

Purchases Return Journal

400

Name one reason why individuals return goods to suppliers.

- goods were unsatisfactory

- damaged

- return of refundable containers and packing materials

500

Describe the difference about the invoice numbers in Sales and Purchase Journals and why.

Purchase Journal - invoice numbers are not in order

Sales Journal - invoice numbers are in order

Why? The business purchases goods from more than one supplier. Each supplier has a unique sequence of invoices.