Cash Payments Journal All disbursements of cash are entered in a cash payments journal . Entries are made from prenumbered checks. Because cash payments are made for various purposes, the cash payments journal has multiple columns. A four-column journal is shown in Illustration G-15 (next page). JOURNALIZING CASH PAYMENTS TRANSACTIONS The procedures for journalizing transactions in this journal are similar to those described earlier for the cash receipts journal. Each transaction is entered on one line, and for each line there must be equal debit and credit amounts. The entries in the cash payments journal in Illustration G-15 are based on the following transactions for Karns Wholesale Supply. May 1 Check No. 101 for $1,200 issued for the annual premium on a fire insurance policy. 3 Check No. 102 for $100 issued in payment of freight when terms were FOB shipping point. 8 Check No. 103 for $4,400 issued for the purchase of merchandise. 10 Check No. 104 for $10,780 sent to Jasper Manufacturing Inc. in payment
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