Types of Subsidiary Book -The Cash Receipts Journal

The Cash Receipts Journal

This Journal records all cash RECEIVED. The sources of information required to write up this Journal are as follow:

1. duplicate receipts for amounts received from debtors
2. daily cash sale sheets
3. bank statement for items such as deposits made direct into the bank by customers and interest on investments collected by bank and credited to the accounts.

A typical Cash Receipt Journal format is as follows:

Column:-

(a) date of receipt

(b) name of payer

© the ledger folio when the amount is posted

(d) discount allowed to customers for prompt payment

(e) sales where cash is paid immediately

(f) amount received from trade debtors

(g) sundry receipts such as rent received or interest received

(h) the amount banked which should be the total of the amount received on a particular date.

The following Cash entries are posted to the ledger :

1. Debit Sales Discount Allowed Account with the monthly total of the Sales Discount column (column d) and credit the various Debtors Accounts with their respective amount.
2. Credit the various debtors with the amount appearing the Sales Debtors column (column f)
3. Credit other Income Accounts ( column g) with sundry receipts
4. Debit Cash At Bank with the Total Amount banked ( column h)