![]() ![]() Some industries that use Trust Accounts such as Real Estates and Law Firms are still required to issue receipts for payments made in relation to these Trust Accounts as they are receiving money on behalf of their clients. These days, payments are made electronically by the customer who sends a remittance advice for the payment made so the business can record the customer payment appropriately. Historically, physical receipts were created and issued to those who made the payment to show that the payment had been received as customers would have paid their accounts via cheque and may have been sent via post. When money is received by the business the details of these receipts are recorded in the Cash Receipts Journal. This column is handy if your bank allows batch payments where you pay multiple suppliers using one transaction. The total amount that is reflected in the Bank upon payment.The last column of the Cash Payments Journal is: Payments made for Sundries such as donations, and asset purchases.Payments made for Cash Purchases of trading stock.Payments made to Creditors in relation purchases made on credit.This section is for why the payment is being made and is broken into 4 columns. The total Creditors amount being the Discount Received plus the Input Tax Credit Adjustment.The amount of the Discount Received (Disc Rec’d) excluding GST.Input Tax Credit Adjustment (ITC Adj) to adjust the GST element.Under this section, the journal is broken up into 3 columns. The Payment Method such as EFTPOS or Direct Debit (Historically this column was used to record Cheque numbers in chronological order as they were written and sent for payment).įrom here there can be two sections if the business is entitled to discounts upon early payment.The columns of the Cash Payments Journal should include: These payments included payments made in relation to general/admin expenses such as telephone and electricity, purchases made by EFTPOS and Direct Debit, withdrawals made by the business owner, payments to creditors, and interest and bank fees. Payments made by a business are recorded in the Cash Payments Journal. The Total Amount of the Credit Note being the Sales Returns Amount plus the GST Payable Amount.The Sales Returns Amount excluding GST.The name of the Debtor receiving the Credit Note.The columns of the Sales Returns Journal should include: Credit Notes may also be raised in the event customers have been overcharged and require a credit adjustment to the initial sale that has already been invoiced and issued to the customer. The Sales Returns Journal is used to record Credit Notes that have arisen due to the return of damaged goods or poor services provided. The Total Amount this being the Sales Amount plus the GST Payable Amount. ![]()
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