1
SPECISLIZED JOURNALS
 Yesterday we looked at using a Purchase Journal.
 What is the purpose of a Purchase Journal?
 How does using a Purchase Journal help us as
Accountants?
Note these slides are available on the class website!
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 9-2
Using Special Journals
Special journals include the following:
• Purchase Journal – for all purchase of merchandise
on account.
• Cash Payments Journal – for all cash payments
• Sales Journal – for all sales of merchandise on
account
• Cash Receipts Journal –for cash receipts
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
3
CASH PAYMENTS JOURNAL
 What purpose does a Cash Payments Journal serve?
 When do we use a Cash Payments Journal?
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 9-2
4
CASH PAYMENTS JOURNAL
 The Cash Payments Journal is used only to record
cash payment transactions.
 As such, only those columns needed to record cash
payment transactions are included in a Cash
Payments Journal.
 As with the Purchase Journal, the Cash Payments
Journal consolidates what would be a double line
entry in a General Journal to a single line entry in the
Cash Payments Journal.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 9-2
5
THE CASH PAYMENTS JOURNAL
page 242
Column 5 – Cash Credit - since all cash payment transactions affect
the cash account, a special amount column is provided to record the
credit to the cash account.
Column 4 – Purchases Discount Credit
Column 3 – Accounts Payable Credit
Column 2&1 – General Amount Columns – for cash payments that do
not occur often (ex rent expense)
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 9-2
6
CASH PAYMENT OF AN EXPENSE
page 243
November 2. Paid cash for advertising, $150.00. Check No. 292.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 9-2
7
BUYING SUPPLIES FOR CASH
page 243
November 5. Paid cash for office supplies, $94.00. Check No. 293.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 9-2
8
CASH PAYMENTS FOR PURCHASES
page 244
November 7. Purchased merchandise for cash, $600.00. Check
No. 301.
While business normally pay for merchandise on account (use of
the purchase journal), sometimes a cash payment for merchandise is
needed.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 9-2
9
Concepts & Terms
Normally, the total amount shown on a purchase invoice is the
amount that a customer is expected to pay.
To encourage early payment, however, a vendor may allow a
deduction from the invoice amount, also known as terms
(example 2/10, net /30)
A deduction that a vendor allows on an invoice amount to
encourage prompt payment is called a cash discount.
A discount on purchases taken by a customer is called a
purchases discount.
When a purchase discount is taken, the customer pays less than
the invoice amount previously recorded in the purchases
account.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 9-2
10
CASH PAYMENTS ON ACCOUNT WITH
PURCHASES DISCOUNTS
November 8. Paid cash on account to Gulf Craft Supply, $488.04,
covering Purchase Invoice No. 82 for $498.00, less 2% discount,
$9.96. Check No. 302.
5
1
1.
2.
3.
4.
5.
6.
2
page 245
6
4
3
Write the date.
Write the account title of the vendor.
Write the check number.
Write the debit amount.
Write the credit amount.
Write the credit amount.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 9-2
11
CASH PAYMENTS ON ACCOUNT
WITHOUT PURCHASES DISCOUNTS
page 246
November 13. Paid cash on account to American Paint, $2,650.00,
covering Purchase Invoice No. 77. Check No. 303.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 9-2