Understanding Cash Receipt Journals in EMS

Jun 1, 2025

EMS Lesson: Cash Receipt Journals (CRJ)

Introduction

  • Focus: Understanding the Cash Receipt Journal (CRJ) in a service business.
  • Journals: Subsidiary journals used to record and organize transactions for the accounting cycle.
  • Types of Transactions:
    • Cash Receipt
    • Cash Payment
  • Today's Focus: Cash Receipt Transactions

Purpose of Journals

  • Record transactions and organize them by type for efficient transfer to ledgers.
  • Subsidiary Journals:
    • Cash Receipt Journal (CRJ): Records cash received.
    • Cash Payment Journal (CPJ): Records cash payments.

Cash Receipt Journal (CRJ)

  • Function: Records all cash received by the business.
  • Source Documents Needed:
    • Receipts issued to clients for money received from owner or customers.
    • Cash register roll: Used if receipt books are not in use, indicates total sales.
    • Cash invoice issued: When only invoice book is used.
    • Deposit slip: Completed for daily total receipts.

Layout of the CRJ

  1. Document Number: Source document and its specific number.
  2. Day: Date of transaction.
  3. Details: Name of the person/business from whom cash is received.
  4. Folio Column: Explained later in the series.
  5. Analysis of Receipt Column: Amount received per source document.
  6. Bank Column: Total cash received per day.
  7. Current Income Column: Amount for services rendered.
  8. Sundry Accounts Column: Other amounts received.

Example Transactions

  • 1st January: Brenda deposits R500,000 as capital. Document No. 001.
    • Recorded in Sundry Accounts, not Analysis Receipt since it's a direct deposit.
  • 5th January: R1,500 received for services. Document No. 002.
    • Recorded in Analysis Receipt, Bank, and Current Income Columns.
  • 9th January: R8,000 received from J. Murray for office rent. Document No. 003.
    • Recorded in Analysis of Receipt, Bank, and Sundry Account Columns.

Balancing the CRJ

  • Totaling the CRJ: Sum each column to check if they balance.
  • Example Balance:
    • Bank total: R24,100
    • Current Income + Sundry Accounts: R5,990 + R18,110 = R24,100
    • CRJ is balanced as both sides are equal.

Conclusion

  • End of Term 2 EMS lessons.
  • Encouragement to review videos for better understanding.
  • Appeal for contributions and support for keeping lessons free:
    • Share resources.
    • Add as My School beneficiary.
    • Contributions eligible for tax benefits through Section 18A certificates.
  • Aim: Free quality education for all South African learners.

Full transcript