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Money receipt sample for Accounting

okay hi everybody this is mr. Manning and this video is going to be about how to record transactions into a cash receipts journal so quick reminder on cash receipts this is any time that the corporation receives cash for some sort of sale usually okay so if you make a sale on account it does not go in this journal and if you pay cash it does not go in this journal and if you purchase something on account it does not go in this journal but whenever you receive cash it goes in this journal alright so a couple things that you're probably going to want to be able to follow along with this video first one is you're gonna want to have a blank cash receipts journal and then you're also going to probably want to have a copy of the transactions so we are doing work together ten two and there is on your own ten to that you can try after this video is over alright so let's go to the journal and talk about this first a lot of this journal looks familiar you have a place for the date place for the account in a place for your document number so those seem pretty familiar but there is a lot of columns in this journal we've got general demo Journal credit accounts receivable credit sales credit sales tax payable credit sales discount debit cash debit this feels kind of overwhelming so I'm going to I'm going to tell you to do something that I think will help you with this particular journal in this particular class we are never going to use the general debit or the general credit columns for the cash receipts journal so something that you might want to do now and in future times when you use the cash receipts journal is actually black out these two columns so I'm going to do that now and when I say black out I mean just kind of make them fill them with black that way you won't be tempted to put anything in those two spaces because nothing is supposed to go there all right now this feels a little bit more reasonable we still have three credit sections and we have to debit sections but hopefully it will not be quite as intimidating as it was before all right so let's start with the very first transaction there's going to mainly be two types of transactions that you will put into this journal you will put whenever you receive cash on account and what that means is that a company owed you money they had purchased something from you previously on account and now they are paying their bill and you will also put transactions called cash and credit card sales this is usually information that you get from the cash register that's in the store so at the end of the day or end of the week however this particular company does it they add up all of the sales that they received from that cash register and they recorded in this journal so let's start with October 4th received cash on account from Oakley company $371 covering s 96 are 144 all right so Oakley company had had been to our corporation previously they had purchased something that costs 371 dollars and they purchased it on account they promised to pay us back later and they are fulfilling that promise now they have sent us 371 dollars worth of cash it probably was a check but we call it cash in the accounting world we now need to record that transaction so over here on the right there's a couple of things s 96 and our 144 it says covering s 96 the sales slip for this transaction was s 96 so this would allow you to go back and look to see what Oakley company originally purchased but the thing that's important for us in the cash receipts journal is the our 140 for this is stands for receipt 144 so this is the receipt that we are issuing to Oakley company to prove that they paid their bill all right so let's begin October 4 Oakley company because they are the ones that are paying us the document number is our 144 it is important to put the are there there's going to be two different types of documents that we're going to use in this journal and we want to make sure that you distinguish that this one was a receipt now let's get over here to the credits in the debit section any time somebody pays us back for money that they had borrowed from us previously it's going to be accounts receivable so Oakland company is doing that in this particular case so their accounts receivable is going to be three hundred and seventy one dollars and then we are receiving cash we did not offer any kind of discount to Oakley company so this part stays blank and in the cash section we are going to put the amount that they paid us 371 as always CC credits have to equal we have a transaction of 371 cash debit transaction of 371 accounts receivable credit they equal so we are done with that transaction let's move on to the next one October 13th recorded cash and credit card sales 8360 $1.60 plus a sales tax of 501 dollar 70 cents for a grand total of eight thousand eight hundred sixty three dollars and thirty cents TS forty three TS can stand for terminal summary and terminal summary would be kind of like the terminal would be like the cash register and this is the summary of all the transactions that went through that terminal it could have been cash transactions could have been credit card sales doesn't matter we add them all together alright so we are going to record this transaction it's the 13th because this is a terminal sale or a cash and credit card sale we actually don't have a specific account to put this in so we're gonna leave this blank and our document number is the TS 43 so going to put TS 43 okay this is not anybody paying us back from previous transaction so we're gonna leave accounts receivable blank sales credits is how much we actually sold sales tax is how much tax we collected so we sold eight thousand three hundred sixty one dollars and sixty cents and we collected five hundred one dollars and seventy cents in sales tax so I am on the sales credit going to put eight thousand three hundred sixty one dollars sixty cents and on sales tax payable 501 seventy one thing I'd like to point out real quick is about this sales tax payable this is a payable account and what that means is we have to pay this to somebody else later that's why we cannot consider it as part of our sales we owe the government this money we are temporarily collecting it for them and then we're going to pay it to them now we have two credits we collected cash so the total of these two together is going to be our cash debit you could write a quick equation and add these two together if you wanted but our transaction is already added them together and has told us the number here so I'm just gonna simply record that number eight thousand eight hundred sixty three dollars and thirty cents once again there is no discount involved so we're gonna leave that part blank all right very last transaction october thirtieth received cash on account from sierra supply covering s ninety seven five thousand nine hundred eighty nine dollars less two percent discount are one forty-five okay so this transaction is very similar to the transaction that took place on october 4th we are receiving money from a company that had previously borrowed it from us it is covering a sale that happened this one's covering s-97 however for some reason we offered sierra supply a two percent discount this happens for a lot of reasons one of the most common ones as companies will offer a discount if you pay early or pay on time it's just kind of an incentive so that the company that owes money will actually pay their bill quickly so we offered them a 2% discount it sounds like that they are receiving that discount and that we are going to issue receipt 145 - Sierra Company or Sierra Supply excuse me so let's record this one it happened on the 30th it was Sierra supply that is paying us back we are issuing receipt 145 to prove that this transaction took place over here in the accounts receivable this is the total amount that Sierra Supply owed us they owed us five thousand nine hundred eighty nine dollars five thousand nine hundred eighty nine dollars however we are not receiving that amount from Sierra supply we gave them a discount of two percent so we need to find out how much their discount is going to be four you could either bring up a calculator or we're using Google sheets so let's just write a simple equation so equals the amount that they did owe multiplied by two percent hit enter and it looks like we are giving them a discount of one hundred and nineteen dollars and seventy eight cents that's a pretty good discount of course it was also a pretty good sale almost six thousand dollars now we need to figure out how much they actually are paying us they notice this amount five thousand 989 we are discounting one hundred nineteen seventy eight so we are just gonna simply subtract these two numbers to figure out how much they actually owe us so we're gonna write a quick equation again accounts receivable - sales discount we are going to actually receive five thousand eight hundred sixty nine dollars and 22 cents from Sierra supply all right guys go ahead and try to do the on your own now