Lesson 4 - Cash Accounting Flashcards

1
Q

Cash payments are recorded in the…

A

Cash receipts journal

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2
Q

Cash payments are recorded in the…

A

Cahs payments journal

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3
Q

After being recorded in the CRJ and the CPJ, the totals are transferred to which report?

A

Statement of Receipts and Payments (SoRP)

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4
Q

What is the purpose of the Statement of Receipts and Payments?

A

To calculate the Cash Surplus/Deficit and Closing Bank Balance

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5
Q

How do you calculate Cash Surplus/Deficit?

A

Cash Receipts - Cash Payments

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6
Q

What is the name given to the headings of each column in the CRJ and CPJ?

A

Classification columns

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7
Q

What is the name given to the classification column used for infrequent receipts and payments?

A

Sundries

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8
Q

In the SoRP, how are the Sundries to be recorded?

A

Sundries should be recorded individually rather than reporting a single “Sundries” total.

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9
Q

T/f - The total amount of the transaction always goes in the “Bank” column.

A

True - the total goes in Bank, then the amount is split up in the classification columns.

E.g. Purchase of cleaning supplies for $550.
Bank = $550
Cleaning supplies = $500
GST = $50

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10
Q

T/f - The GST column is for recorded GST Paid or GST Received only.

A

True - some items that appear in the CRJ and CPJ do not attract GST because they are not goods or services.

E.g. Drawings, capital contribution, interest, wages

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