1. TOPIC 7 UNIT 1 Concept of a Cash Receipts Journal (CRJ) for a service business

2.  Businesses have many transactions that take place during a business day.  Businesses use journals to record transactions on a daily basis.  There are up to ten possible journals that a business may need to use.  Cash receipts Journal and Cash Payments Journal are used by a business to record transactions that take place the most frequently in a business:  Receiving money  Paying money Why do businesses need a CRJ?

7. TOPIC 7 UNIT 2 Formats and uses of the columns of a CRJ

8.  The format of the CRJ depends on the nature of the business and the kind of transactions that take place in the business.  We will be looking at service businesses first, these are businesses that sell a service only and not stock,  A service business sells a service that people are prepared to pay for.  Examples: Plumber, hairdresser and electrician  Cash register roll (CRR) – any money the business receives is recorded on a source document called the CRR What does a CRJ look like?

11. The complete CRJ for a service business

15. TOPIC 7 UNIT 4 Entering cash receipts transactions into the CRJ

16. Some possible transactions for the CRJ  The owner outs capital into the business.  Loans are received.  Money is received for providing services (current income)  Rent money is received for letting out property (rent income)  Interest on a current bank account received.  The business receives a cash refund from a supplier.

17. Recording transactions in journals

18. TOPIC 7 UNIT 5 Closing the CRJ at the end of the month

19.  At the end of the month the columns of the journal are totalled.  We call this the closing of the journals.  The total of the bank column shows the total cash received by the business for the month.  The journals should cross check – this means that the total of the bank column should be equal to the total of all the other columns together. Totalling the CRJ at the end of the month

24. TOPIC 7 UNIT 6 The effect of cash receipts transactions on the Accounting Equation

25. The Accounting Equation and the cash receipt transactions