Difference Between Cash Receipts Journal And Cash Payments Journal

Cash Receipts Journal And Cash Payments Journal In Accounting

Cash Receipts Journal is used to record only cash receipts transactions e.g., Cash Sales and Cash Received From Customers / Accounts Receivable or Debtors, Revenues Received for Cash, etc., while Cash Payments Journal is prepared to record cash payments transactions e.g,, Cash Purchases, Cash paid To Suppliers / Vendors / Accounts Payable, Expenses Paid In Cash, etc.

Cash receipts are recorded on debit side of cash receipts journal while cash payments are recorded on credit side of cash payments journal.

Cash receipts journal shows normal, usual, positive or favorable side i.e., debit side of Cash Account while cash payments journal shows unusual, negative or unfavorable side of cash account.

Cash receipts journal also provides us information about Cash Inflows i.e., cash coming into the business while cash payments journal shows cash outflows of the business i.e., cash going out of the business.