Question

Q1

Examples from each

1- Examples sales journals

2-Examples Cash receipts journals

3- Examples purchase journals

4- Examples cash payments journals

Q2

Advantages of using each of these

1- advantages sales journals

2- advantages cash receipts journals

3- advantages purchase journals

4- advantages cash payments journals

It’s better if it’s computer writing but if it’s hand writing please clear font

Answer 1

Question 1:

1: Sales journal is used to record entries for credit sales to customers. Examples of Sales journal:

a. Credit sales:

Customer a/c Dr. $100

To Sales a/c $100

(To record credit sale to the customer)

2. Cash receipt Journal is used to record receipts in cash.

a. Cash sales:

Cash a/c Dr. $100

To Sales a/c $100

b. Interest Receipt in cash

Cash a/c Dr. $200

To Interest a/c $200

3. Purchase journal is used to record details of purchases done on credit from vendors:

a. Credit purchase:

Purchase a/c Dr. $100

To Vendor a/c $100

4. Cash payment Journal is used to record the payments done in cash.

a. Payment of rent in cash:

Rent A/c Dr. $100

To Cash a/c $100

b. Payment of wages in cash:

Wages a/c Dr. $100

To Cash a/c $100

Question 2:

1. Advantages of Sales Journal:  

a. All credit sales are recorded separately which helps in monitoring the overall credit sales.

b. Separate customer a/c can be opened in the journal which helps in tracking the outstanding amount for each customer.

c. As only credit sales are recorded in this journal, it reduces the probability of errors in posting journal entries.

2. Advantage of Cash receipt journal:

a. All cash receipts are recorded at one place which helps in monitoring the overall cash receipts.

b. Helps in preparation of cash flow statements and cash ledger.

3. Advantages of purchase journal:

a. All credit purchases are recorded separately which helps in easy monitoring the outstanding vendor payments.

b. Analysis on suppliers outstanding and rates can be performed more efficiently.

c. As only credit purchases are recorded in this journal, it reduces the probability of errors in posting journal entries.

4. Advantages of cash payment journal:

a. All cash payments can be monitored more efficiently when recorded at one place.

b. expenses in cash can be analysed to identify any increase in expenses.

c. Helps in preparation of cash flow statements and cash ledger.