Subsidry Journals[CRJ ; CPJ , and DJ]

What is the CPJ?

The Cash Payments Journal records all money paid out by the business.

CPJ memory tip

Cash Paid = money going OUT of the business.

What type of transactions go in the CPJ?

All payments made by the business.

Examples of CPJ transactions

Paying creditors, buying stationery, wages, rent, water and electricity, equipment, bank charges

Typical CPJ columns

Date, Details, Folio, Bank, Discount Received, Creditors Control, Sundries

CPJ Bank column meaning

All amounts paid from the bank account.

CPJ Discount Received column meaning

Discounts received from suppliers when paying creditors.

CPJ Creditors Control column meaning

Payments made to creditors.

CPJ Sundries column meaning

Payments that do not fit into other columns.

Effect of CPJ on bank balance

Bank balance decreases.

What is the CRJ?

The Cash Receipts Journal records all money received by the business.

CRJ memory tip

Cash Received = money coming INTO the business.

What type of transactions go in the CRJ?

All money received by the business.

Examples of CRJ transactions

Cash sales, receiving money from debtors, capital introduced, loans received, rent income, interest received

Typical CRJ columns

Date, Details, Folio, Bank, Sales, Debtors Control, Sundries

CRJ Bank column meaning

All money received into the bank account.

CRJ Sales column meaning

Cash sales.

CRJ Debtors Control column meaning

Money received from debtors.

CRJ Sundries column meaning

Receipts that do not fit into other columns.

Effect of CRJ on bank balance

Bank balance increases.

What is the DJ?

The Debtors Journal records all goods sold on credit.

DJ memory tip

Debtors owe the business money (pay later).

What transactions go in the DJ?

Only credit sales of stock.

Examples of DJ transactions

Selling stock on credit to customers.

Transactions NOT recorded in DJ

Cash sales (CRJ), credit purchases (Creditors Journal), money received from debtors (CRJ)

Typical DJ columns

Date, Debtor, Invoice Number, Folio, Sales, Cost of Sales

Main effect when selling on credit

Sales increase and debtors increase.

Why do debtors increase?

Because customers owe the business money.

Journal that records money received

CRJ

Journal that records money paid

CPJ

Journal that records credit sales

DJ

Does CRJ involve money in?

Yes

Does CPJ involve money out?

Yes

Does DJ involve immediate cash?

No, money comes later.

Exam clue: business receives money

Use CRJ

Examples of CRJ exam clues

Cash sales, loan received, capital introduced

Exam clue: business pays money

Use CPJ

Examples of CPJ exam clues

Rent paid, equipment bought for cash, creditors paid

Exam clue: goods sold on credit

Use DJ

Examples of DJ exam clues

Sold stock to a customer who will pay later