Cash purchases are recorded in the cash payments journal. The layout of the purchases journal is similar to the sales journal. The main difference is that there needs to be columns to record source document references as there are three source documents associated with a purchase. These three are important to check what has been ordered has been invoiced and what has been invoiced has been delivered. The cash receipts journal is used to record all cash receipts including cash sales.
Electronic funds transfers The layout is similar to the other special journals.
The source document for a cash receipt is a receipt and the receipt number will be recorded in the journal. As cash is the vulnerable asset to theft, the cash receipts journal needs to record other information to prevent and detect theft. The date the cash was banked. The cash payments journal is used to record all cash payments including cash purchases. Cheques Electronic funds transfers Credit card purchases should be recorded in the purchases journal.