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The cash receipts journal is used to track the incoming flow of cash to your business.

Accounting cash receipts journal. Sales on account are booked instead in the sales journal. A cash receipts journal is a specialized accounting journal and it is referred to as the main entry book used in an accounting system to keep track of the sales of items when cash is received by crediting sales and debiting cash and transactions related to receipts. It is helpful to analyze the flow of cash.

Sometimes the cash book is just a posting medium and sometimes a running balance is maintained as an integral part of the system. As the cash books are a medium of posting to the nominal ledger they are books of prime entry. The account number for the general ledger account is placed in the posting column of the cash receipts journal.

Remember the format of the accounting equation where assets liabilities owners equitythe asset side is the left side of the equation and the liabilities owners equity is the right side of the equation. When you need to make a journal entry refer to your chart of accounts to see if the account you need to use falls on the left or right side of the accounting equation. Cash receipts journal is considered as the separate part of cash.

It used to be an actual book that the bookkeeper would use to make accounting entries. These days bookkeepers enter transactions on the computer using an accounting program. The journal is the book of first entry.

It is also helpful to plan and control our expenses payment. So recording a clear journal of cashes is very important to have the best cash flow reports. After a transaction occurs and a source document is generated the transaction is analyzed and entries are made in the general journala journal is a chronological listing of the firms transactions including the amounts accounts that are affected and in which direction the accounts are affected.

Accounting guide for petty cash includes definition journal entries sample forms of petty cash voucher and journal and detailed example of petty cash accounting and procedures. The column values are posted in their own separate ways. With this we can find future need of cash.

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