acc wk3dq2.docx - Cash receipt journal is the special journal that is used for recording cash received in the company from different sources Here debit

acc wk3dq2.docx - Cash receipt journal is the special...

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Cash receipt journal is the special journal that is used for recording cash received in the company from different sources. Here, debit is cash and sales is credit. It journalize all the cash inflow of the company. This journal is used to record all the transactions that involve the receipt of cash . The entries are done according to the nature of Cash receipt. The major sources of cash receipt in a business are as follows: Investment of capital by the proprietor/owner Collection from customers Sale of an asset for cash Cash sales Loan from an individual, bank or any other financial institution. Collection of interest, dividend or rent etc. [ CITATION ras18 \l 1033 ] . The cash flow are posted individually in credit to customer account and credit to other account
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Unformatted text preview: from a cash receipt journal as they are different by nature. Those two separated cash receipt journal provides an information on source of cash income.The cash receipt from a credit costumer are recorded in credit to customer or account receivable and the cash sales or credit customer such as interest received are recorded in other account. They are recorded differently because it makes journal easy and clear to enter the transaction. This reduces confusion for accountant. Putting both types of credits in the same column may bring confusion and leads to wrong transaction. References rashidjaved. (2018). Cash receipt journal . Retrieved from Play Accounting: ...
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  • Spring '18
  • professor newerze
  • Sales, Consultative selling

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