 In this presentation we will take a look at multiple choice questions related to special journals. First question. Borrowed money from a bank what journal is used? A. Cash Disbursements Journal. B. Sales Journal. C. Cash Receipts Journal. D. Purchases Journal or E. The General Journal. So let's read that through one more time then we'll cross them out using the process of elimination. Borrowed money from a bank what journal is used? A. Cash Disbursements Journal. That would be used if we were dispersing the cash but if we borrowed money we would be getting cash typically so it's not going to be the disbursement we're probably receiving money in this transaction. B. Sales Journal. Now the borrowing of money does result in us getting money but the money is not a result of sales. Sales is going to be revenue if we sold something so it's not going to be the sales journal. C. Cash Receipts Journal. Typically if we borrowed money you would think that we got cash for borrowing it so I'm going to keep that for now. D. Purchases Journal. If we borrowed money we may have borrowed it to purchase something but we haven't purchased it yet we only have the resources now to do so so I don't think it's going to be the purchases journal. E. General Journal. The General Journal will be the default if we can't fit it anywhere else so let's read it through one more time we're left with C and E. Cash Receipts Journal and the General Journal. Borrowed money from a bank what journal is used? C. Cash Receipts Journal. E. General Journal. Now again the General Journal is the default and I think this will typically fall into the cash receipts journal if we receive cash for the borrowed funds. If we borrowed money in order to buy equipment or something like that then it might not fit in any of these and we'd have to go to the General Journal but I'm assuming that we got cash when we borrowed and therefore C would be the correct answer. Once one more time we'll read through it and question and answer. Borrowed money from a bank what journal is used? C. Cash Receipts Journal. Next question. Makes cash sale what journal is used? A. Cash Disbursements Journal. B. Sales Journal. C. Cash Receipts Journal. D. Purchases Journal or E. The General Journal. So let's read through it one more time see if anything we can cross some of these out using the process of elimination. Makes cash sale what journal is used? A. Cash Disbursements Journal. That would mean that we are spending cash and if we made a sale you would think that we would be receiving cash so I don't think it's going to be A. B. Says the Sales Journal and it does look like we made a sale so I'll keep that one for now. C. Says Cash Receipts Journal and it does look like we sold something for cash and got money so it does seem like we received cash I'll keep that for now. Purchases Journal. We didn't purchase anything we're the one selling it someone purchased from us so I don't think that's it. E. Says the General Journal and that's going to be the default journal if it doesn't fit anywhere else and we have two contenders right now B and C. Sales Journal to Cash Receipts Journal so I don't think it's going to be the General Journal because I think we'll be able to put it somewhere. So once again we'll read through it we're left with B and C. Sales Journal Cash Receipts Journal let's read through it makes cash sale what journal is used the sales journal or the cash receipts journal now this is where a lot of people get mixed up because we made a sale and you would think the name of the sales journal would say that would go to the sales journal because we made a sale but it doesn't go to the sales journal because the sales journal really means sales on account accounts receivable must be involved in order for it to be long in the sales journal in this case we got cash and that's the definition of the cash receipts journal so it's not going to be the sales journal because AR accounts receivable is not affected cash is affected any or is used the cash receipts journal is used anytime we get cash receipts even if it's for a sale and we have a sales journal so it's going to be in the cash receipts journal so that's the got to remember that one and so one more time question and answer makes sale makes cash sale what journal is used see cash receipts journal next question makes payments on a note what journal is used a cash disbursements journal be sales journal see cash receipts journal d purchases journal or e the general journal once again we mix payments on a note what journal is used a cash disbursements journal well that would be used when we disperse cash and it looks like we did here we made a payment on a note so I'm going to keep that for now b says the sales journal and we didn't sell anything we're paying off a loan that we took out so it doesn't look like it should be in sales see says the cash receipts journal now we got money in the past when we took out the loan but now we're paying back the loan so the cash is going down not up so no receipts d says the purchases journal we're not purchasing anything here and we're just paying back the loan that we took out in the past we may have taken the loan out to purchase something in the past but now we're just paying it out and e says the general journal we would only use that as a default if we can't fit this anywhere else I'll keep that for now let's read it through one more time we're left with a and e cash disbursements journal and the general journal so we says makes payment on a note what journal is used cash disbursements journal or the general journal because I think we paid cash out I think it can go into the cash disbursements journal and therefore we don't need the general journal which is going to be the default when we use these special type journals so I believe the answer then will be a once again question answer makes payments on a note what journal is used a cash disbursements journal