Cash payment journal
Cash payment journal is a specialized journal in which all cash payments are recorded. For example, cash paid to creditor will be recorded in cash payment journal.
Simple double entry for cash receipt
Debit--> Creditor or expenses or any other relevant account
Date Column: is used to record the date of a cash payment related transaction or when business pays cash
Account debited Column: is used to record name of the person or organization to which the business has paid cash or Debit side of double entry. For example a business has paid cash to a creditor, Creditor=Debit and Cash=Credit and therefore creditor will be recorded in Account debited column
Folio Column: records reference to cash ledger account
Cash Column: is used to record the amount of cash paid.
Discount Column: if any cash discount received, it will be recorded in it
Purchases Column: In the case of cash purchases the amount of purchases will be recorded in it
Creditor Column: If cash was paid to a creditor, the amount of cash that was paid to creditor is recorded under this column
Sundry Accounts Column: It is filled in for those accounts which don’t have special column in cash payment journal. For example, interest and commission paid, cash paid for the purchase of a fixed asset like building, machinery etc.
Following are the transactions of Jackfield Ltd for the month of march 2011.
|March 1.||The owner of Jackfield Ltd withdrew $2000 from the business for his personal use|
|March 15.||Paid cash for cash purchases $500|
|March 18.||Cash $500 paid to a creditor Mr. Y and discount received was $100|
|March 22.||Purchased equipment for cash $1000|
|March 30.||Paid cash $300 as commission for sales service rendered by J Corporation|
Required: Using the above information prepare a Cash payment journal
Cash payment Journal