We are tackling your understanding of the cash journals of a service business. Cash journals are necessary so we can accurately record information that we see on the cash documents into the records of the business.
Cash Receipts Journals summaries all business receipts and cash slips issued. We look at the terms that identify whether a transaction needs to be recorded in the CRJ.
Cash receipt journal transactions affect the accounting equation in various ways such as cash that comes in as capital to increase owner's equity and receiving income from rendering services.
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