[Music] good day great eights and welcome to tuma mina teaching you are tuned into your third and last ems lesson for term two this lesson we'll take out some time to understand the journals specifically the cash receipt journals or for short the crj so let's get down let's get down to business the first thing that you should know is that a service business has two types of transactions that take place namely the cash receipt and the cash payments but for today we will only focus on the cash receipt transactions so what are journals journals are also called subsidiary journals and these journals are used to record transactions it organizes transactions in different types of transactions to simplify the orderly transfer of information to the next step in the accounting cycle for example the ledger there are two types of subsidiary journals to summarize these transactions the cash receipt journal for short the crj is the journal we record all cash received and the cash payment journal the cpj is where we record all the cash payments cash receipt journal is the journal where you record all the cash received by the business cash payments journal is where you record all the cash payments of the business today we will be focusing on the crj the cash receipt journal all the cash received by the business is recorded where in the crj so what information do we need to record it in the crj well the following source documents are needed receipts issued to the clients deposit slips cash register role and cash invoice can you still remember the source documents let's quickly recap them let's start with the receipt receipts are issued when the businesses received money either from the owner for rent or capital or from customers for services rendered the business keeps the copy or a duplicate and gives the original to the payee next up is the cash register role if the received books are not used then the cash register issues receipts on all the payments for services rendered the client received the original slip and a copy that stays in the machine to indicate the total sales at the end of the day and the next source document is the cash invoice issued this is issued when the business does not have a cash register but only an invoice book and the last one a deposit slip this is usually completed at the end of the day to deposit the total receipts for that particular day so gradates let's move over to look at the layout of the crj in the first column we have the document number this is where you write the source document and its specific number that a transaction took place the second column is the day that a transaction took place and then you should write the name of the person or the business from whom the cash was received the folio column will be explained later in the series the next column is the analysis of the receipt column where every amount received per source document is written in then we have the bank column where all the totals cash received per day is recorded the current income column is where the amount received for services rendered are entered and lastly the sundry accounts column is where amounts received for other items are recorded let's look at a few examples of transactions that should be recorded in the crj remember the owner brender from bake brenda on the 1st of january the owner brenda deposits 500 000 rand directly into the bank account of the business bake it brenda as her capital contribution receipt number 001 was issued to her so remember first thing that we do first we record the document number which is zero zero one then the day which is the first day of the month the owner's name brenda will be recorded in the detail column this specific transaction will not be recorded in the analysis receipt column why because when a direct deposit is received it will not be recorded here the capital contribution should also be recorded in the sundry accounts on the 5th of january 2022 baked brenda received 1 500 ran for service rendered receipt number 002 was issued so let's record this document receipt number 002 the day will be the 5th details will be cash or service rendered you should also record the 1500 grand in the analysis receipt column bank and also the current income column grade let's see if you can do the next transaction all by yourself on the 9th of january bake and brenda receive a cash worth of 8 000 ran from jay murray for the rent of offices in the building issued receipt number 003 you've got all the information so now try it all by yourself [Music] [Music] okay great time is up but let's see if you've got the correct answer the document number is zero zero three and the day is the ninth you should also record the eight thousand rand where in the analysis of receipt bank and sundry account column so well done grade 8. once we have completed the crj for the month we need to find the totals of each column the total of the band column must equal the sum of all the other columns if these two totals are the same we say the crj balances the same amount appears on both sides of the crj so let's see how they balance as you can see the total of the bank column equals 24 100 rand the other columns are the current columns of 5990 and the sundry accounts of eighteen thousand one hundred and ten so let's look at this five thousand nine hundred and ninety rand plus eighteen thousand one hundred and ten rand equals twenty four thousand 100 which means the totals are the same so we say the crj balances credit that's all for today this was also your last lesson for term two i hope you understand accounting a bit more if not well you can go back to the videos and watch it again and again and again until you crack the counting concepts i know you can do this see you in term three i hope you enjoyed this lesson these lessons are very costly for us to produce but we are very determined to keep it free for everyone we produce these lessons at the rate at which it gets funded so here are three ways to join hands with us to keep it free for all south african learners first off share our resources so that more people can benefit secondly you can add us on my school as a beneficiary this will help us immensely thirdly we give section 18a certificates so your contribution will have a tax benefit so let's join hands and collaborate for free quality education for all south africans [Music] you