Medical Supply Company Case Study

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CHAPTER FIVE: SPECIAL ISSUES FOR MERCHANTS

ACCOUNTING JOURNALS

NAME:……………………………………………………

UNIVERSITY OF THE PEOPLE
10/2/2015

If the Medical Supply Company uses a cash receipts journal, a cash payments journal, a sales journal, a purchases journal, and a general journal. I will like to know what cash receipts journal, a cash payments journal, a sales journal, a purchases journal, and a general journal is.
A Cash Receipts Journal (CRJ) is used to record all the cash received from customers, debtors, et al.
Date Account Credited Post. Ref. Credit Card Expense
DR Accounts Receivable
CR Sales
CR Sales Tax Payable
CR Other Accounts
CR

A Cash Payments Journal or Cash Disbursement Journal (CPJ/CDJ) is used to record all the
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It only involves trading or manufacturing that purchases inventories on account and lastly;
Date Vendor Invoice # Invoice Date Terms Post. Ref. Accounts Payable
CR Freight In
DR Purchases
DR

A General Journal (GJ) is said to be a sequential daily recording of activities such as buying and selling in an organisation either on debit or on credit as they occur. It is also referred to as the book of original entry.
Date Accounts and Description Debit Credit Debit Credit

Therefore, knowing the definition of all the above, it will be easy to determine which journal the following transactions should be recorded:
A. Payment of Property Taxes: This is a disbursement of property taxes paid out by Medical Supply Company based on property assessment by the government and it will be recorded under the Cash Payment Journal by Dr Property tax and Cr
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