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What is Cash Receipts Journal & Cash Payment Journal

What is Cash Journal:

Cash journal is used for transactions which are petty in nature. (petty cash book). For maintaining petty expenses cash journal transactions are recorded.
In cash journal, we need to create business transactions first, like revenue items and expense items based on these transactions we will make postings in cash journal.  

Method of Recording cash Transaction in cash Journal:

           In a business large number of transaction consist of receipt and payment of cash. The method of recording these cash transactions differ according to the size of the business and volume of a cash transaction.

cash receipt journal
cash receipt journal

         A business concern may use any of the following methods for the recording of cash transaction Keeping in view its needs and requirements.

  1. Cash Journal
  2. Cash Book

1. Cash Journal:

              In a big business enterprise where daily Receipt and Payment activities if cash is large as making it impossible to record both receipts and payments in one book, the book is divided into two parts. One part records the receipts only and the other payments. In this way, the work is also divided into two or more persons.

             Separate Journal is used for receipts and payments of cash which are cash receipts journal and cash payment journals. These are discussed as under:


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Cash Receipts Journal:

             Cash Receipts Journal is a book where we record all the cheques and cash received from customers and paid into the bank. It is used for recording cash receipt transactions. The journal is divided into two parts, Debit and Credit the debit side one column is provided for discount allowed and other for cash while on the credit side multiple columns are provided for sales accounts receivable and other items from whom the cash is received. The standard form of cash receipt journal is given as under.

Cash Receipts Journal Format:

The cash receipts journal template are as follow

 Date  Account credited  P/r Debits Credits
Cash Discount Sales Accounts Receivable Sundry accounts


Cash Receipts Journal Examples:

Consider the following four cash receipt journal entry example for your cash receipts journal:

  • You make a cash sale for Rs.456;
  • Client X sends a check for a prior sale, paying Rs.10000 and taking a Rs.12.20 sales discount;
  • You are paid Rs.6,000 in principal and Rs.300 in interest on a note.
  • Client Y sends a check for a prior sale, paying Rs. 12,000

How to fill in a cash receipt journal:

For cash receipt journal entry example I will take the above example and will fill the data in CRJ. 

 Date  Account credited  P/r Debits Credits
Cash Discount Sales Accounts Receivable Sundry accounts
   Sales    456        


Download cash receipt journal template:

I have uploaded a sample template for cash receipt journal for my readers, you can download here. 

Cash Payment Journal:

               Another wide used special journal is cash payment journal sometimes called cash disbursement journal in this journal all the cheques issued and paid are entered these cheques are issued for making payment to creditors payment for expenses cash purchases.Purchases of asset etc
The standard form of cash payment journal is given below.

Cash Payment Journal Format:

 Date  Account Debited  P/r Credits Debits
Cash Discount Purchase Accounts Payable Sundry accounts

Cash Book:

A Cash book in which receipts and payments of money are recorded.

About the author

Salman Qureshi

Salman Qureshi is an Accountant by profession & he loves to write on Commerce & Management Sciences Subject to assist Students. Hope you guys will like his effort.

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