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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

Credit--> Cash


DATE
ACCOUNT DEBITED
FOLIO
CASH
DISCOUNT
Purchases
DEBTOR
SUNDRY






















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.


EXAMPLE

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

DATE
ACCOUNT CREDITED
FOLIO
CASH
DISCOUNT
Purchases
DEBTOR
SUNDRY
Mar. 1
Mar.15
Mar.18
Mar.22
Mar.30
Drawings
Purchases
Creditor-Mr. Y
Equipment
Commission





2000
500
500
1000
300


100

500



600
2000


1000
300
Mar.31
TOTAL

43001005006003300