Money Receipt Example for Businesses Made Easy

Money receipt example for businesses

today in this short video we are going to discuss the cash receipts journal first we will go over what the cash receipts journal is the cash receipts journal manages all cash coming into the business this is what a cash receipts journal looks like now you will go through a few examples of posting some transactions John Henry is a regular customer of ours and has paid $500 of his accounts receivable from us the first step in the journal is to put the date next we put which account is being credited in this case it is an individual accounts receivable account for John Henry for an explanation we will put the invoice he's paying off if the invoice number is known it is placed here after that we post the numbers since John is a good customer we give him a 10% discount on his purchase so $50 which is the discount goes in the sales discount column and four hundred and fifty dollars goes in the cash debit column in the accounts receivable credit column we put the full amount of the purchase $500 it is important to insure the total debits are equal to the total credits finally we put a checkmark in the posting reference column if the Mount has been posted to a specific sub ledger the next transaction we will look at is from Britney Britney is a casual customer who does not have an account with us she purchases 200 dollars worth of merchandise and pays cash for the purchase like John's transaction we put it the date in June 12 because both transactions are in June it is not necessary to put the month in the accounts credited is going to be sales and for an explanation we can just put cash sale next we fill in the cash debit column with $200 and then fill in the sales credit column with $200 notice how the debits and credits even out because we are selling merchandise the merchandise has to be taken out of our in we will credit the inventory account for the value of the product and debit the cost of goods sold account in this case the value of the product is $150 because we marked it up $50 when we sold it to Brittany so we place this number in the final column finally we total up all the columns and put a double underline underneath to show that it is a final value notice the single underline above that that indicates that we are adding up our values we will also put the account numbers at the bottom of each column so we know what accounts are being used