Lesson 7 & 8 - Cash Journals

Question 1

Cash receipts are recorded in the…

Answer 1

Cash receipts journal

Question 2

Cash payments are recorded in the…

Answer 2

Cahs payments journal

Question 3

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

Answer 3

Statement of Receipts and Payments (SoRP)

Question 4

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

Answer 4

To calculate the Cash Surplus/Deficit and Closing Bank Balance

Question 5

How do you calculate Cash Surplus/Deficit?

Answer 5

Cash Receipts - Cash Payments

Question 6

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

Answer 6

Classification columns

Question 7

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

Answer 7

Sundries

Question 8

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

Answer 8

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

Question 9

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

Answer 9

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

Question 10

T/F - The GST column in the CRJ and CPJ is for recording GST Paid or GST Received only.

Answer 10

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