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College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570

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BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570
Textbook Problem

Which of the following is not an advantage of the cash receipts journal?

  1. a. Transactions do not have to be posted on a regular basis.
  2. b. Transactions can be recorded on one line.
  3. c. Transactions involving debits to Cash are recorded in one place.
  4. d. Repetition in posting is eliminated.
  5. e. Special columns can be used for similar transactions.

To determine

Identify which is not an advantage of the cash receipts journal.

Explanation

Cash receipts journal: Cash receipts journal contains all transactions in which cash is received, or increased. When a cash receipts journal is used, all transactions in which cash is debited must be recorded in it. It may be used for a service as well as a merchandising business.

Advantages of a Cash Receipts Journal:

The advantages of using a cash receipts journal are as follows:

  • Transactions generally can be recorded on one line.
  • All transactions involving debits to Cash are recorded in one place.
  • It eliminates much repetition in posting to the general ledger when there are numerous transactions involving Cash debits. The Cash Debit side can be posted as one total...

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