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Picture

Lesson 17-18: Cherry Mowers (Part 3)

Continued from Lessons 14 & 16.

​Cherry Mowers is a business started by Mike Cherry on 1 March 2025. In this Lesson, we introduce the cash receipts and cash payments journals.

The cash receipts journal (CRJ) and the cash payments journal (CPJ) are two very important control documents within the accounting system. They are both source journals which means they are entered from the source documents produced for the cash transactions: primarily cash receipts and cheques.

Extenders
  1. Having to use the Cash Receipts Journal and the Cash Payments Journal means we have two more journals to fill in every month. What’s the benefit of using these journals rather than just using the General Journal?
  2. On May 16, Mike used a business cheque to buy some flowers. Why can’t we record this as a business expense? Discuss.
  3. What if Mary Cherry had come into some extra cash and decided to pay Mike 3 months rent (instead of 1) of May 1. How might we have treated this?

Resources**
  1. Student Workbook - Lesson 17-18 [1.2MB] - download​
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  • Home
  • Color-Accounting-Bootcamp
    • Benefits
    • 0. Introduction
    • 1. Funding Butterfly
    • 2. BaSIS Framework
    • 3. Classic Tx - v6.0X >
      • Tx01. Loan
      • Tx02. Contributed equity
      • Tx03. Repay loan
      • Tx04. Purchase equipment
      • Tx05. Purchase inventory
      • Tx06. Cash Sale COS
      • Tx07. Window cleaner
      • Tx08. Credit Sale COS
      • Tx09. Shop cleaning
      • Tx10. Gift card
      • Tx11. Account received
      • Tx12. Prepaid Sale COS
      • Tx13. Prepaid advertising
      • Tx14. Depreciation
      • Tx15. Advertising
      • Tx16. Pay supplier
    • 3. Classic Tx PizzaBox >
      • Tx01. Loan
      • Tx02. Contributed equity
      • Tx03. Repay loan
      • Tx04. Purchase equipment
      • Tx05. Purchase inventory
      • Tx06. Cash Sale COS
      • Tx07. Window cleaner
      • Tx08. Credit Sale COS
      • Tx09. Shop cleaning
      • Tx10. Gift card
      • Tx11. Account received
      • Tx12. Prepaid Sale COS
      • Tx13. Prepaid advertising
      • Tx14. Depreciation
      • Tx15. Advertising
    • 4. Summary learnings
    • 5. Business narrative
    • 6. Extenders
  • Virtual Learning
  • Teachers
  • Store
  • More
    • SeanStuff
    • Color Accounting
    • Curriculum Approach >
      • Menu page
    • Support
    • Gallery
    • LMS plans
    • Contact Us
    • Newsletter
    • Legal notices >
      • IP Rights