tailieunhanh - Lecture Accounting fundamentas (7e): Chapter 18 - Curran

Chapter 18 - The cash payments journal. After completing this chapter, students will be able to: Record transactions in a cash payments journal; total, prove, and rule the cash payments journal; post from the cash payments journal. | CHAPTER EIGHTEEN THE CASH PAYMENTS JOURNAL 1. Record transactions in a Cash Payments journal. 2. Total, prove, and rule the Cash Payments journal. 3. Post from the Cash Payments journal. THE CASH PAYMENTS JOURNAL Objectives: 18- Setting Up a Cash Payments Journal This special journal is used to record only payments of cash. 18- Setting Up a Cash Payments Journal (continued) The Cash Payments journal has five money columns. All credits are entered in the last two money columns. The purchases discount credit column is used to record any purchases discounts taken. 18- Setting Up a Cash Payments Journal (continued) The Cash Credit column is used to record the amount of cash payment in each transaction. 18- Setting Up a Cash Payments Journal (continued) The debit section of the Cash Payments journal contains three money columns. The Accounts Payable Debit column is used to record the amounts paid to creditors on account. 18- Setting Up a Cash Payments Journal . | CHAPTER EIGHTEEN THE CASH PAYMENTS JOURNAL 1. Record transactions in a Cash Payments journal. 2. Total, prove, and rule the Cash Payments journal. 3. Post from the Cash Payments journal. THE CASH PAYMENTS JOURNAL Objectives: 18- Setting Up a Cash Payments Journal This special journal is used to record only payments of cash. 18- Setting Up a Cash Payments Journal (continued) The Cash Payments journal has five money columns. All credits are entered in the last two money columns. The purchases discount credit column is used to record any purchases discounts taken. 18- Setting Up a Cash Payments Journal (continued) The Cash Credit column is used to record the amount of cash payment in each transaction. 18- Setting Up a Cash Payments Journal (continued) The debit section of the Cash Payments journal contains three money columns. The Accounts Payable Debit column is used to record the amounts paid to creditors on account. 18- Setting Up a Cash Payments Journal (continued) The Merchandise Purchases Debit column is used to record the amounts received from purchases. 18- Setting Up a Cash Payments Journal (continued) The last money column in the debits section -- Other Accounts -- is used to record the debit entries for cash paid to sources other than cash purchases and amounts paid to our creditors. 18- Setting Up a Cash Payments Journal (continued) The two credit columns reflect purchase discounts and cash paid out. 18- Recording Transactions in the Cash Payments Journal For cash purchases, cash is credited in the Cash credit column and purchases are debited in the Purchases Debit column. Purchase discounts are recorded in the Purchase Discount credit column. 18- Recording Transactions in the Cash Payments Journal (continued) When cash is paid for money owed a creditor, and it is after the discount period, Accounts Payable is debited and cash is credited using both special columns. 18- Recording Transactions in the Cash Payments