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FAC1502: STUDY UNIT 5A – FINANCIAL ACCOUNTING CONCEPTS, PRINCIPLES AND PROCEDURES

Study Unit 5(A) covers the following:

  • General Journals
  • Cash Receipts Journal
  • Cash Payments Journals

The Accounting Process

Where are we in the Accounting Process thus far, and what comes next?

Download these slides for this Study Unit before you proceed. Please note that the layout is set as two slides per page.

Handout: Processing of Accounting Data Notes (PDF)

Lecture 1: The Accounting Process so far (VIDEO)

Let’s revise where we are in the Accounting Process thus far and identify what comes next.

General Journal (GL) Entries

Every transaction must be journalised before being posted to the GL. Theoretically, all of them can be journalised using the General Journal.

Lecture 2: The General Journal (VIDEO)

Take note of the following:
  • The GJ almost ‘mirrors’ the posting we’ve done in the GL
  • The referencing between the GJ and the GL… this is vital in exams (and in real-life!) so that amounts can be traced back and forth

The Cash Receipts Journal

This subsidiary journal is to record all the monies deposited in the bank account.

Lecture 3: The Cash Receipts Journal (INFOGRAPHIC)

Why do we use the CRJ? Take a look at the infographic, then watch the video to make sure you can visualise what types of transactions belong in the CRJ.

Lecture 4: The Cash Receipts Journal – Why we use it (VIDEO)

The CRJ:

  • The sources of cash, and the source documents
  • The need to tie up the deposits with the records
  • The posting of totals to the GL, rather than the transactions themselves 

You’ll need the following handout for the Class Example we’re going to do for the CRJ and GL

This includes:

  • Required
  • Format for the CRJ
  • Format for the GL
  • Solution for the CRJ
  • Solution for the GL

Handout: Class Example: Fussy Pet Foods CRJ (PDF)

Lecture 5: Fussy Pet Foods CRJ – Class Example (VIDEO)

Let’s use the Class example to get used to the format and the entries in the CRJ. Use the blank CRJ provided in the Fussy Pet Foods Handout to complete as I talk you through it.

Completing the CRJ:

  • Note that you can create different columns should your business receive cash from other sources on a regular basis
  • Also note what we use the Analysis of Receipts column for

Lecture 6: Fussy Pet Foods CRJ to GL – Class Example (VIDEO)

As I talk through the posting of the CRJ to the GL, pay attention to the detail!

Again, use the blank GL I’ve provided to attempt this yourself.

The Cash Payments Journal

This subsidiary journal is to record all the monies paid out of the bank account.

Lecture 7: The Cash Payments Journal (INFOGRAPHIC)

Why do we use the CPJ? Take a look at the infographic, then watch the video to make sure you can visualise what types of transactions belong in the CPJ.

Lecture 8: The Cash Payments Journal – Why we use it (VIDEO)

After checking out the infographic, watch this video on why we use the CPJ.

The CPJ – Note the following:

  • The types of payments
  • Payments from the bank account with no source documents
  • The need to tie up payments and bank statements
  • Posting to the GL

You’ll need the following for the Class Example we’re going to do for the CPJ and GL:

This includes:

  • Required
  • Format for the CPJ
  • Format for the GL
  • Solution for the CPJ
  • Solution for the GL

Handout: Class Example: Fussy Pet Foods CPJ (PDF)

Lecture 9: Fussy Pet Foods CPJ – Class example (VIDEO)

As we did with the CRJ, Let’s use the Class example to get used to the format and the entries in the CPJ. Use the blank CPJ provided in the Fussy Pet Foods Handout to complete as I talk you through it.

Lecture 10: Fussy Pet Foods CPJ to GL – Class example (VIDEO)

As I talk through the posting of the CPJ to the GL, pay attention to the detail!

Again, use the blank GL I’ve provided to attempt this yourself.