Cash column: The amount of cash paid is entered in cash column.Posting reference (abbreviated as PR) column is used to write the number of the account mentioned in account debited column. Posting reference (PR) column: All accounts in subsidiary and general ledger are properly numbered.Account debited column is used to enter the title of the account to be debited in the accounts payable subsidiary ledger or general ledger as a result of the payment of cash. Account debited column: Every cash transaction results in a credit to cash account and a debit to some other account.Payee column: The payee name (the person or entity to whom the payment is being made) is entered in this column.If the payment is made by a check, this column is used to enter the check number belonging to the payment. Check number column: In large businesses, the payments are mostly made by checks.Date column: The date at which a payment is made to someone is entered in date column.The format of a cash disbursements journal and explanation of all the columns provided there in is given below: Explanation of the columns used in cash disbursements journal In cash disbursements journal, the cash payments are usually categorized as payments to accounts payable and payments for other purposes. Payment of cash for donations, charities and Zakat etc.įormat of cash disbursements/payments journal.Cash refunds for goods returned by customers.Payment of cash for the purchase of a tangible or intangible asset.Payment of cash for various expenses like rent, advertisement, carriage, wages and salaries etc.Payment of cash for previous credit purchases i.,e.The usual examples of cash outflows in a business are given below: ![]() ![]() All cash inflows are recorded in another journal known as cash receipts journal. In other words, a cash disbursements journal is used to record any transaction that includes a credit to cash. The cash disbursements journal (also known as cash payments journal) is a special journal that is used by a business to manage all cash outflows.
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