Special Journals: Purchases and
Cash Payments
Chapter 17
Using the Purchases Journal
• Purchases journal is for recording purchases on
account. (Not just merchandise but anything on
account)
• Enter date the invoice was received not the date it was
prepared
Pg 482
Purchases of
Merchandise
On account
Purchases of
Non Merchandise
On account
Pgs 483-484
Posting Merchandise
Posting Non-Merchandise
Pgs 485-486
Proving and Ruling
Special Amount
Columns
Posting Column Totals
Pgs 486-487
Using the Cash Payments Journal
• The cash payments journal is used to record
all transactions in which cash is paid out or
decreased.
Pg 489
Cash Payment for Prepaid Insurance
Cash Payment for Purchases
Cash Payment on Account Payable
Pgs 490-491
Cash Payment for
Transportation
In
Cash Paid for Salaries
Cash Payment of
Miscellaneous
Expenses such as
Bank service charges
Pgs 492-493
Cash Payment of Bank Card Fees
Pg 494
Posting Payment to an Accounts
Payable
Posting Transactions
From the General Column
Accounts payable payments and payments to accounts journalized in the general
column are posted individually on a daily basis.
Pgs 495, 497
Proving and Ruling the Cash Payments
Journal
Pg 498
Posting Column Totals of the Cash
Payments Journal
Prove and rule the journal
Once debits and credits
equal
General Column Totals
Don’t get posted.
Totals are posted once
A month
Pg 499
Schedule of Accounts Payable
• Used to make sure that the amount in the
controlling account, Accounts Payable, it the
same as the account totals in the Subsidiary
Ledger.
Pg 500
Proving Cash
• Proving Cash is the process of verifying that
cash recorded in the accounting records (cash
ledger) agrees with the amount in the
checkbook (check stub).
Pg 501