Streamline Your Finances with Our Travel Receipt Format for Banking

Travel receipt format for Banking

[Music] welcome to count thoughts in this lesson we're going to be looking at the cash receipts journal we're going to be looking at what it is what is recorded on the cash receipts journal the format of the cash receipts journal as well as a full example where we go through various transactions and see how it's recorded in the cash receipts journal this is our first lesson on the cash receipts journal we'd like to check out the next one where we go a bit more advanced you'll find it in the link in the description below so what is the cash receipts journal what do we record in the cash receipts journal well this is a journal used to record all cash received by the entity during the period this could be actual cash received deposited into the entity's bank account or electronic transfers very important like i highlighted here it's all cash received by the entity so whatever cash the entity receives regardless of what the purpose it is for then you will include it or you will record it in the cash receipts journal cash paid out or owed to the entity is not recorded in the cash receipts journal and that is where some learners students would make mistakes where a scenario would be perhaps that you sold something to someone and the person still owes you money you would not record in the cash receipts journal because you have not received money as yet as well as cash paid out if you're paying cash out it is not recorded in the cash receipts journal that is recorded in the cash payments journal so what is the format for the cash receipts journal well here is how it looks like you've got the name of the company and here is just an example you've got eldos flowers and then you've got cash receipts journal or the name of the journal and the period for which the journal is done then the first thing that you have here is your document number usually you'll be given your document number if you're not given the document number then you may put it in sequence like one two three and so forth and then you've got the day here and this is the day of the month if it's the first day of the month and you put there zero one as i have done and then you've got the details this is the name of the person or the name of the entity that deposited or brought money to the business and then you've got what is called folio or f o l this is a cross reference code and it is usually a number or a combination of numbers and letters and it is mainly for connecting two different records so this is showing you where else it is found in another record or where it's taken to or it's coming from so we're not going to worry much about this one here when you're doing the cash receipts journal and then you've got what is called the analysis of receipts this is where you record all cash received during that particular day so for the first of the month if you received money then you put that amount here and the next column we have is the bank this is where you put the amounts that are in the analysis of receipts column so let's say you've received five thousand rand you put five thousand ran under analysis of receipts and then you'd go to the bank column and you'd also put five thousand rand there if you received two amount on the same day let's say you received five thousand from one entity and another 2 000 from a different entity or from a customer then you'd put the 5 000 and the 2000 under the analysis of receipts and then you'd add them together and put the total under the bank column so analysis of receipts will record all the transactions that happened during the day and would transfer all those and combine them for that particular day and put them under the bank column but if it's just one transaction then you just have one amount an analysis of receipts and the same amount under the bank caller and then if you had any sales if you received money because you sold something to a customer then you put it under the sales column as well you put the same amount under the sales column now here's what i must mention with the cash receipts journal you may have more columns than what you see in this format and that's why i said we've done another lesson where it's a bit more advanced where you'll see other columns like your debtors and your v80 you'll find that in the link in the description below but if it's your first time looking at cash receipts journal this is the best one to look at so if you have an additional column let's say for that task for instance if your data paid you that's when you put it there however if you have any amount that does not belong to sales or it's not because of a cash sale then it will go to the sundry account sundry account is where we record every other transaction other than sales or other than the column that we actually have and the only one we have here is sales so if it's not a sale let's say you borrowed money from the bank or someone who owed you paid you the money or you sold furniture those are not sales of merchandise so you put them under sundry account you put the amount here under the amount and the details you would put if it's a debtor paying you then you put their debtors if it's a bank giving you a loan then you put their loan however if it's a sale of merchandise or sale of inventory or the sale of stock then you put the amount on the sales column so what i'm saying here is that the sundry account is for all other amounts for which you don't have a column i hope it's made sense now let's go into an example and look at a number of transactions in completing the cash receipts journal i'm confident that after you complete them and you follow us step by step you should be able to do the cash receipts journal much easier here is an example we are given transactions on a particular month so let's say this is the month of january we've got transaction on the first day on the second day on the third day on the sixth day all the way until the 23rd of the month and we have to complete the cash receipts journal so let's go ahead and do that going through each transaction one by one so let's bring up our cash receipts journal format here we go and we've written again the name of the entity which is l those flowers and you'll be given the name of the entity so you start with that one and then you write down cash receipts journal and then you write which month you're completing the cash receipts journal for in this case we have put that december 20 21 so you will be told for which month you have to complete the cash receipts journal and then we begin with our transactions let's look at the first one we are told here that benny b the owner invested 30 000 run in the business he should receive zero one zero okay what is happening here the owner is investing money in the business so the business has just received 30 000 rent so that definitely goes into our cash receipts journal because the business did receive money from the owner so first things first what is our document number or document number is zero 1 0 and it's day 1 so we're going to put our document number 0 1 0 as you can see here i've just done that and our day is day 0 1 and what is our details here or in other words who is bringing this money into the business well let's go back and see we're told here benny be the owner so we put the name of the person or the entity like i said earlier who is bringing money into the business so in this case it's benny b so right there benny b and the details and then like i said we'll leave the folio column for now then we have analysis of receipts how much did we receive from benny b well we received 30 000 rents so put their 30 000 run and analysis of receipts and since that is the only transaction for this particular day we will go ahead and put it in the bank as well 30 000 rent now we know that it's not a sale it's the owner who is investing money in the business so it's not going to go under the sales column and if it does not go under the sales column it's going to go under sundry account because we don't have the column for capital and by the way the owner is investing money in the business that is called capital or owner's capital so we're going to put 30 000 rent under the amount here in this summary section and then the detail there is the name of the account not the name of the person or entity who's bringing money in the business that is where students usually make mistakes so bear in mind that it's the name of the account so we're going to name it there capital okay or owner's capital you'll still be correct now if you want to know what account goes with what transaction and all that we have done the accounting equation where we explained all those details we'll put the link in the description below so you'll check that one out where we look at basic accounting equation where we explain the accounts and how to identify what account you will be dealing or you're dealing with okay let's go ahead and do our second one so just completed the one on the first day so i'm going to highlight it and you can use a pencil or a highlighter to highlight which one you've done so that you know you do not miss anything out so let's highlight that one now the second day what happened we paid the months rent by check 3000 rent check number zero one was issued now what do we do that one we paid the month's rent by check well if the business has paid an amount going out that does not go in the cash receipts journal because the business is not receiving money but it's rather paying money out so that one will go into the cash payments journal and we are doing a lesson on that one as well cash payments journal we'll put in the link in the description below so the cash payments journal we're not doing it now we're doing the cash receipts journal so we're going to skip that one there so i'm just going to highlight it in a different color to just show you what does not go into the cash receipts journal there we go and then on the third day what happened we bought inventory from ego capital by check 2500 and the check is number zero two okay so what happened here bought inventory by check and we paid 2500 so what do we do with this one it does not go into our cash receipts journal because the business is not receiving money but it's rather paying it out just like the previous transaction so we highlight that one in purple as well and then on the sixth day we received rent from attendant king wave 1500 receipt zero one one okay what happened here we received money so the business is receiving money that goes into the cash receipts journal so let's go ahead and record this one here we can see it's receipt 0 1 1 that is our document number and it's day 0 6 so let's go ahead and put our document number 0 1 1 and our day is day six and then what is the details or what is the name of the person or the entity bringing money into the business well as we read the name of the person is king wave so we're going to put it there under details and then under analysis of receipts how much was the amount that they brought into the business well let's go back and see again we're told he received rent from a tenant king wave 1500 so the amount is 1500 and you can see it's the only transaction on the sixth so we're going to analysis of the seats and put the 1500 and then under the bank we're also going to put the same amount 1500 and we know it's not a sale so it does not go into the sales column what does that mean it goes into the sundry account column so we put the under amount 1500 and what we call it what is the name of the account will be receiving money from a tenant who is renting from the business so it's rent income okay i hope you got that one correct or you are following along well let's go back and see our next transaction so let's highlight that one and then on the eighth of the month we paid for insurance by check 1200 well that one should be easy it does not go into the cash receipts journal because we're not receiving money we are paying for insurance so let's highlight it in purple and then on the ninth we sold inventory on credit to jim james 500 rent so what do we do with that one well we sold inventory but how did we sell it we sold it on credit we didn't sell it on cash so if we sold it on credit it does not go into our cash receipts journal because we did not receive the money we sold it on credit okay so that will go into our sales journal and in to our debtors journal and that has lift so we're going to leave that one out because we have not received any money so we're going to highlight it then on the 10th of the month we bought inventory on credit from ego capital 3000 rank well here we bought inventory on credit so two things there we bought inventory so that's not a cash receipt and we bought it on credit so there was no movement of cash when we bought it so we're leaving that one out as well it does not go into the cash receipts journal because we're not receiving money so we highlight that one on the 14th day of the month inventory was sold for cash as per receipt 0 1 2 12 000 rent okay so what happened here we sold inventory and we sold it for cash very important so that means we received money that's gonna go into our cash receipt journal or document number we're told here it's received zero one two so we're gonna put zero one two and it's day 14 so let's go ahead and do that 0 1 2 as the document number and the day there is 14. what is the detail the detail there is sales by the way another name of inventory they could have said merchandise or stock so don't be confused they are the same thing so we put their sales because that's what happened we brought in cash because of a sale and what is the amount that we received well let's go back inventory was sold for cash as per receipt zero one two twelve thousand ran so it's twelve thousand rent so we'll go under analysis of receipt we put twelve thousand rand and we'll go under the bank section and put twelve thousand rent now it's a sale and we have the column for sales so we're going to put the 12 000 under sales so that means we don't even have to go to the sundry account because we have the column for sales and that's what i was alluding to earlier and if you have a column for it that's what you that's why you put it but you do not have a column for what you're dealing with you'll take it the sundry account as you've seen with the previous two examples let's go back and highlight that as we have just done it now on the 18th we paid wages by cheque again that does not go into our cash receipts journal that goes into our cash payments journal because we're paying out we're not receiving cash so we're going to highlight that one day and we're left with two more transactions what i would encourage you to do here is to pause the video and try and complete them on your own and gauge your understanding of completing the cash refuse journal once you've done that you can continue the video and see if you got the correct answer so go ahead and do that okay i hope you've paused i hope you've completed the last three transactions so let's see how well you did on the 21st we borrowed 15 000 rent from muller bank and deposited the check received zero one three so what happened here the business borrowed 15 000 rent from muller bank and it deposited the check so that means the business did receive this money 15 000 rent so it's received 0 1 3 so that's our document number 0 1 3 and the day is the 21st of the month so go there and you put the 0 1 3 as the document number and you put day 21 okay what is the detail here well who gave the money into the business or who brought the money into the business well it came from muller bank as you can see here we borrowed the 15 000 rent from mola bank so we put it there mula bank and the amount is 15 000 thousand rental put under analysis of receipt we put it under bank as well and as you can see we have no column for loan or bank loan so obviously it goes into the send sundry account so we put that fifteen thousand right under amount and under the details we put what the money was for and how it came into the business or what account is affected well it's a loan and the loan is muller bank i hope it's making sense here always be able to identify your accounts correctly so let's go back highlight that one day as we have just done it and then the last thing that we have here is on the to the third of the month we bought equipment from chill tree by check 7000 red now here's a tip for you i'm sure by now you should know whenever you see the word you bought something or you paid for something then you know it doesn't go into the cash receipts journal so you can just skip that one because it goes into cash payments journal as i had mentioned earlier oh you bought something on credit or sold something on credit you know it does not go into the cash receipts general you're only looking at when you received money that is what the cash receipts journal is concerned about so let's highlight that one as it does not go into the cash receipts journal so you can see here we have just done everything that we needed to do in our cash receipts journal and now that we have just completed everything all that we need to do is to go back and put our totals and you can see here i've already done that our very last row we have the totals for analysis of receipts with the totals for our bank and we have the totals for all our other columns where we have the rand amounts and obviously the total for your analysis of receipts has to be exactly the same as the total for your bank account it's not the same you've done something wrong somewhere i hope this lesson has made sense i hope it was simple enough and i hope you have gained value and you've gotten some tips on how to complete the cash receipts journal if you have indeed gained value please subscribe to our channel like this video and share it to those who think it might help till next time cheers [Music]