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Question

While posting in cash payment journal ___________________.

A
Only the individual accounts are posted
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B
The individual accounts are debited and also the total of the cash column is credited
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C
Only the individual accounts are credited and there is no need to post the total of the cash column
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D
Only individual accounts are credited and the total of the cash column is debited
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Solution

The correct option is C The individual accounts are debited and also the total of the cash column is credited
A cash payment journal is a special journal. Cash payment journal or cash disbursement journal is used to record all cash payments made by the business. All transactions during which you spend funds. For example, if you paid cash to any of your creditors, you would record it in your cash payment journal. Hence, the individual accounts are debited and also the total of the cash column is credited.

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