Source documents used for the preparation of the cash payments journal include:
A) Receipts to customers
B) Credit notes issued by suppliers
C) Signed contracts
D) Cheque butts

Question

Quizplus · Accepted Answer

The cash payments journal is used to record all cash payments made by a business. The primary source document for this journal is the cheque butt, which provides details about the payment, including the payee, amount, and purpose. Receipts to customers, credit notes issued by suppliers, and signed contracts are not relevant to the cash payments journal, as they do not provide information about cash payments made by the business.

Source Documents Used for the Preparation of the Cash Payments