Chapter 4: What Is a Journal?

GRADE 8 — Journals and the Books of First Entry Chapter 4: What Is a Journal? A journal is the first book where transactions are recorded, in date order, as they happen. Think of it as a daily diary for the business — every financial event gets written in here before it goes anywhere else. Books of first entry (also called subsidiary journals) are special journals designed for one type of transaction each. This keeps everything organised. The Main Journals Journal Name Records Source Document Cash Receipts Journal (CRJ) All cash received Receipt, deposit slip Cash Payments Journal (CPJ) All cash paid out Cheque counterfoil, EFT slip Debtors Journal (DJ) Goods sold on credit Invoice (copy) Creditors Journal (CrJ) Goods bought on credit Invoice (received) Debtors Allowances Journal (DAJ) Returns from debtors Credit note (issued) Creditors Allowances Journal (CAJ) Returns to creditors General Journal (GJ) Debit note (sent) Everything else that does not fit above Various Chapter 5: The Cash Receipts Journal (CRJ) Every time the business receives money — from selling goods, collecting from debtors, or the owner putting money in — it goes into the CRJ. Structure of the CRJ Date Details Doc No. Bank Debtors 1 Mar Owner capital Dep 1 R5 000 5 Mar Cash sales Rec 1 R1 140 10 Mar Debtor: T.Mokoena Rec 2 R500 R500 R6 640 R500 TOTAL Sales VAT Sundries Capital R5000 R1 000 R140 R1 000 R140 R5 000 Chapter 6: Debtors and Creditors Who is a Debtor? A debtor is a person or business that owes money to YOUR business. They bought goods from you on credit — they got the goods but have not paid yet. You are waiting for their money. Who is a Creditor? A creditor is a person or business that YOUR business owes money to. You bought something from them on credit — you got the goods but have not paid them yet.