What is recorded in the cash payments journal?

Cash payments journal is one of the special journals maintained by an organization to record all those transactions which are made by paying cash or bank check. Cash payments journal can involve different accounts e.g stock purchase payments, advertising payments, wages payments including drawings. Drawings are the amounts which are paid to the owners of the organization from the organizations assets (cash or any other asset). There can be two versions of cash payments journal;

  1. Simple version: It contains only 5 columns (date, account debited, check number, posting reference and amount paid). See the first diagram below.
  2. Advanced version: It can contain more than 5 columns as shown in the second diagram below.


Cash Payments Journal – Simple Version

cash payments journal simple version

Cash Payments Journal – Advanced Version

cash payments journal advanced version

Both versions of cash payments journal are most widely used by companies. Notice that the total amount of cash paid during the month of January (i.e. from 3rd January to 27th January) is same in both versions of the cash payments journal. Both versions shows only the way or representing the information while the information given by both versions is the same. Therefore, organizations can adopt simple or advance version according to their specific needs and management requirements.

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