Day 3: Cash receipts and cash payments
Key terms and concepts
• Cash: besides meaning actual money, in business cash usually means cheques as well as direct debits and credit card transactions.
• All cash receipts are accounted for in the cash receipts journal.
• All cash payments are accounted for in the cash payments journal.
• When combined, the cash receipts and the cash payments journals are often referred to as the ‘cash book’.
In days 1 and 2 we categorised our transactions according to a chart of accounts that we created to suit our own business needs and we recorded our business transactions on a ‘one by one’ basis, which can be very time-consuming. In this lesson we will learn about special journals that make the recording of ...
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