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Why a cashbook is called Journalised ledger?
Cash book is a journal because the transactions are recorded in it for the first time from the source of document and from journal these transactions are posted to the respective account in the ledger. We can say cash book is a ledger also in the sense that it serves the purpose of cash account also.As such cash book is journal as well as ledger, and hence it may call journalised ledger.
What is difference between a cash payment journal and a purchases journal?
a cash payment journal is used to record only cash payment transactions where as the purchases journal is used to record ONLY purchases on account transactions
Transactions recorded in the cash receipts journal?
Transactions recorded in the cash receipts journal are, all receipts of cash.
Can you record transactions in 2 journals Example Can sale of merchandise for cash be put in the cash receipts journal and the sales journal?
A sale of merchandise for cash would be: Debit cash or bank account, Credit sales
Are the cash account and bank account in the general ledger the same or two separate accounts?
The cash account and bank account in the general ledger are not the same. They are usually two separate accounts that represent different transactions. If they were to be the same account there would be confusion for instance when banking or withdrawal of money is done.
What are the eight types of business transaction?
cash sales, credit sales,purchase on account,collection from sales on account,settlement of purchase on account, direct purchase on cash,installment sales and installment payment
Why a cashbook is called Journalised ledger?
Cash book is a journal because the transactions are recorded in it for the first time from the source of document and from journal these transactions are posted to the respective account in the ledger. We can say cash book is a ledger also in the sense that it serves the purpose of cash account also.As such cash book is journal as well as ledger, and hence it may call journalised ledger.
What is difference between a cash payment journal and a purchases journal?
a cash payment journal is used to record only cash payment transactions where as the purchases journal is used to record ONLY purchases on account transactions
How the cash book is both a book of prime entry and a ledger account?
The cash book serves as a book of prime entry because it records all cash transactions as they occur, providing a chronological record of cash receipts and payments. Simultaneously, the cash book also acts as a ledger account since it summarizes all cash transactions in one account, showing the opening and closing balance of cash at the end of the accounting period.
Transactions recorded in the cash receipts journal?
Transactions recorded in the cash receipts journal are, all receipts of cash.
Can you record transactions in 2 journals Example Can sale of merchandise for cash be put in the cash receipts journal and the sales journal?
A sale of merchandise for cash would be: Debit cash or bank account, Credit sales
Are the cash account and bank account in the general ledger the same or two separate accounts?
The cash account and bank account in the general ledger are not the same. They are usually two separate accounts that represent different transactions. If they were to be the same account there would be confusion for instance when banking or withdrawal of money is done.
What are the advantages of cash and credit transactions?
Cash is nice because you don't spend what you don't have. Credit transactions don't require you to carry cash that can be lost or stolen.
Explain Petty Cash Transactions?
Petty cash transactions are small, miscellaneous purchases or expenses. In business, there is usually a separate cash fund for this type of transaction.
How many type of transactions are there?
Two types of transactions: Cash Transactions- Where payment is made immediately by cash or cheque. Credit Transactions- Where the goods or services hands immediately but payment take place at a later time.
What is a non cash?
Answer:Non-cash transactions are transaction where no cash is involved. Signing a lease contract, granting options, accrued expenses (expenses are incurred, while actual cash payment is later) are examples of non-cash transactions.
What is cash account?
what is a cash account
