CRJ and CPJ

CRJ and CPJ is the part of learning basic accounting. In foreign countries, basic accounting learning starts from 8th grade where the teacher explains CRJ and CPJ. So, today, we will explain these two basic terms of accounting.


Meaning of CRJ 

CRJ means cash receipt journal. In CRJ, we record only cash receipts. There are lots of sources of receiving cash, so, we can make different columns in this journal. In higher classes, this journal is not made, it is included in the debit side of cash book.

Meaning of CPJ

CPJ means cash payment journal. In CPJ, we record only cash payments. These payments are done for creditors, repayment of loans and other expenses. For knowing how much payment has been done, we show the different columns. For paying different creditors, we show creditors column in CPJ. In higher classes, this journal is not made, it is included in the credit side of cash book.

Following screenshot will teach you that both CRJ and CPJ will become the part of cash book.

{Remember : When we make cash book from CRJ and CPJ, we will either leave discount allowed and discount received or we will make special column in cash book. Both cash allowed and discount received are not receipt or payment of cash. Discount allowed is loss of business. Discount received is gain of business which will be transferred to profit and loss account}

Solution Problem Relating to CRJ and CPJ

Hey can i ask am little bit confused abt this transaction the question says that Themba Makhathini received a cheque from shimange for 2000 being part payment of his account?Does this transaction to go CRJ or CPJ plz help me out???

Nthabiseng Malange from South Africa 

Dear Nthabiseng Makhathini, first of all you will check in the question whose books you are preparing as accountant. If information has not been given in the question, you should understand, you are preparing the books of Themba Makhathini. Because Themba Makhathini had to receive money of 2000. So, he received cheque from Shimange. Shimange may be his customer or shimange may return his loan or anything. So, this transaction go to CRJ in the books of Themba Makhathini.