Cash Receipts Journal: Definition with Sample
Like Cash Disbursement Journal, another important special journal is the cash receipts journal. Cash receipts journal can be defined as a special journal which deals with the all cash received that are generated from sales, interest, rent, or many other sources.
The cash receipts journal has a column entitled by Cash Dr. The cash receipts journal contains many columns for Cash (DR), Sales Discounts (DR), Accounts Receivable (CR), and Sales Revenue (CR). Which cash received transactions will be included in the cash receipts journal are determined by the frequency of the transaction. There is another column, Other Accounts (CR) column which is exercised to record those irregular cash transactions which do not fall into a labeled column such as Cash or Accounts Receivable. For examples interest collections, rent collection, or notes receivable. This posting process of cash receipts journal is similar to the posting process of the sales journal. At regular gap, each amount in the Other Accounts Cr. column is posted in the appropriate account in the general ledger. The Other Accounts column is generally inserted or prepared for cross-checking purposes. The posting is indicated by adding the account number in the Posting Reference column of the cash receipts journal. In the accounts receivable subsidiary ledger the individual entries in the Accounts Receivable (CR) column are posted to the customers accounts. The posting reference CR and the accurate page number are inserted in the Posting Reference columns of the accounts. These postings should be done frequently. The posting reference CR and the proper page number are inserted in the Posting Reference column of each customer’s account. A check mark (_) is placed below the total amount to specify that the individual items have been posted. At the end of each particular accounting period all other columns are posted to the general ledger as totals. The total of the debit columns is compared with the total of the credit columns in order to prove the equality. When the totals amounts are posted, their account numbers are entered just below the column totals. The total amounts of the Accounts Receivable Cr. and Cash Dr. Columns are posted to the appropriate accounts in the general ledger, and their account numbers are inserted below the totals which ensure that the postings have been made properly.