Cash Payments Journal

**Simimano** · 04-Mar-13, 11:36 AM

Hey guys!

I have a question about General ledger and Cash payments journal, I am quite rusty with this and I do not understand that when you are filling out the General ledger, I need to enter the transactions in the CRJ(Cash receipts journal) and CPJ(Cash payments journal) But the provided information for the General ledger does not contain anything else than the basic transactions for the amount spent or received.

How do I get the total that needs to be in the CRJ and CPJ?

I do not understand exactly..Suppose R34 900 in Drawings, There's R1800 In CPJ..Where does the R1800 come from? Its certainly not in the information provided.. I am so confused! This must've been confusing too..But please if anyone knows what I'm getting at please do explain to me!

Thanks in advance!

**Elijah** · 04-Mar-13, 01:24 PM

Hi Simimano

Are you referring to a manual or a computerised accounting system, I would assume it is computerised, so which accounting program are you using. Basically though, any drawings made by the owner of a business would have to be entered in the CPJ, so you would Credit Bank account [CPJ], and Debit Drawings. All monies coming into the business or leaving the business can only be done thru the CPJ and the CRJ. You would need to clarify your question further if you need more advice.

**Simimano** · 04-Mar-13, 03:53 PM

Hi Elijah

This is from the accounting that's part of my studies, And yes it is online/Computerized, I also have to complete it on the PC of course. Mainly, my problem is that without anymore given information than what I already have to complete the general ledger there are amounts on the Memorandum that show up completely out of nowhere..Well to me. I tried figuring it out but..clearly that didn't happen which is why I thought I'd post it here, perhaps I could obtain more direction as of to what I'm not doing..

If the owner draws R34 900 all together, Like I said R1800 is placed in the CPJ, But yet..with the information it says absolutely nothing about the R1800..?

Clearly I am not doing something to get to the R1800. I just do not know what. How do I get the values of the CPJ and CRJ is what I do not understand.

**vieome** · 04-Mar-13, 04:12 PM

Originally Posted by Simimano

This is from the accounting that's part of my studies, And yes it is online/Computerized, I also have to complete it on the PC of course. Mainly, my problem is that without anymore given information than what I already have to complete the general ledger there are amounts on the Memorandum that show up completely out of nowhere..Well to me. I tried figuring it out but..clearly that didn't happen which is why I thought I'd post it here, perhaps I could obtain more direction as of to what I'm not doing..

If the owner draws R34 900 all together, Like I said R1800 is placed in the CPJ, But yet..with the information it says absolutely nothing about the R1800..?

Clearly I am not doing something to get to the R1800. I just do not know what. How do I get the values of the CPJ and CRJ is what I do not understand.

You need to provide more information. In general if owners draws 34900 that is the amount that should be in CPJ. When you mention 1800 is that the balance of the CPJ or the drawings amount in the CPJ. And is that the drawings amount for the GL balance? Is 34900 the drawings for the whole year? is the 1800 in the CPJ drawings for a period say for the month?

The accounting procedure would be to take your transactions enter them in the the Journals first then post from the journals into the GL. Not to post from the GL to Journals. If you have 1800 in CPJ that amount will then need to be posted to the GL account. If your GL account balance is the the 34900 then the 1800 would be added to the GL, but without dates and details it is very, if not impossible to answer your question.

**Elijah** · 04-Mar-13, 05:28 PM

This type of Accounting question would come with instructions at the end of the question; something like prepare a trial balance from the information given, or using the trial balance given wrtie-up the general ledger accounts, knowing this would shed more light on what you are asking. Basically though, everything that's in the memo, you should be able to find in the question. Some questions are fairly straight forward and just test your knowledge, then there are the trick type of questions, which can get confusing unless you know your subject matter very well. If the question is asking you to prepare a CPJ and a CRJ, then the data needed to do this, would be given in point form with dates, something like the following

Jan 01 A.Smith paid R5,000 into a business account
05 Purchased goods for re-sale from Placid Ltd
25 Paid wages by cheque no. 193 R16,000
31 A.Smith withdrew for his own use R1,800

Record the above transactions in the following journals CPJ, and CRJ.

Would need more info to help you. Do you perhaps think that there is an error in question paper or memo?

**Simimano** · 05-Mar-13, 09:00 AM

Hmm..Yes, My question wasn't clear as I myself was so very confused..My apologies. Alright, this should clarify things, I have taken the instructions out of the memo:

I attached the instructions I was given, Note that it is in PDF format.

Other than those instructions, I obviously have the Trial balance and furthermore the given task to complete (referring to instructions)

Which I will be at, again today.

**Simimano** · 05-Mar-13, 11:26 AM

Originally Posted by Elijah

This type of Accounting question would come with instructions at the end of the question; something like prepare a trial balance from the information given, or using the trial balance given wrtie-up the general ledger accounts, knowing this would shed more light on what you are asking. Basically though, everything that's in the memo, you should be able to find in the question. Some questions are fairly straight forward and just test your knowledge, then there are the trick type of questions, which can get confusing unless you know your subject matter very well. If the question is asking you to prepare a CPJ and a CRJ, then the data needed to do this, would be given in point form with dates, something like the following

Jan 01 A.Smith paid R5,000 into a business account
05 Purchased goods for re-sale from Placid Ltd
25 Paid wages by cheque no. 193 R16,000
31 A.Smith withdrew for his own use R1,800

Record the above transactions in the following journals CPJ, and CRJ.

Would need more info to help you. Do you perhaps think that there is an error in question paper or memo?

I read through your answer again and I'd just like to add that it couldn't possibly be a fault on the question paper (all-though I wish it was) Like you said " everything that's in the memo, you should be able to find in the question." I just can't seem to wrap my head around it..I guess I'm just not remembering something, I won't give up though, Its probably something minor. Thanks for the answer though.

**vieome** · 05-Mar-13, 11:51 AM

You still not providing enough info.
The balances in your trial balance will be your opening balance for July in your GL, You then need to post all the transactions you are given for July into the correct journals, and post from the journals to the correct GL accounts

**Elijah** · 05-Mar-13, 12:55 PM

Hi Simimano, if you post the entire question along with the memo, either vieome or myself will provide an explanation for you.

**Simimano** · 05-Mar-13, 03:41 PM

Thanks for being willing to help.

Herewith is attached the whole task, Instructions, There's an example and the rest of the empty ledger I am yet complete, so hopefully this will shed some light on the matter..Probably what I should have done in the first place, but better late than never! The text in red is only correct until Vehicles, the rest must still be filled in. This is my task paper and exactly how I must complete it, I did the first few as an example from the memo, but only completed until Vehicles. The complete task: