The amount of discount allowed to customers is entered in sales discount column. Sales discount: Sellers generally allow a certain amount of discount to customers who make payment within discount period.The cash account in general ledger is debited by the total of this column. Cash: In cash column, the net amount of cash received is entered.Explanation: The explanation or reason of the cash inflow is briefly explained in this column.Post reference: The post reference column is used to enter the account number of subsidiary or general ledger account to which the entry belongs.For every inflow of cash, one or more accounts are essentially credited in accounts receivable subsidiary ledger or in general ledger or in both. Account credited: The account credited column is used to enter the title or name of the account that is credited in ledger as a result of cash inflow.Date: The date at which the cash is received is entered in date column.The information in ten columns shown in above journal is entered as follows: For a common understanding, we can use the following format: Explanation of the columns used in cash receipts journal The format of a cash receipts journal used by an organization depends on its nature of business and information needs. Receipt of cash from other sources like sale of a business asset other than inventory, collection of dividend, interest or rent income and obtaining loan from a financial institution or an individual etc.įormat and posting of cash receipts journal.Collection or recovery of cash from credit customers or receivables and.
For recording all cash outflows, another journal known as cash disbursements journal or cash payments journal is used.įor the purpose of making entries in a cash receipts journal, all inflows of cash can be divided into the following three categories: In other words, this journal is used to record all cash that comes into the business. Cash receipts journal manages all cash inflows of a business organization.
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