Cash Receipts Journal

What is a Cash Receipts Journal?

A cash receipts journal is used to record any cash the business receives.

How it Works

Before computers, transactions were recorded in  a series of journals.

One of those journals was the cash receipts journal.
Typically, a business receives most of its cash from two sources.
It will receive cash from sales.
​The business will deposit these takings in the bank.
It will also receive cash from customer payments.
Again, the business will deposit this money in the bank.
To record the receipts, you use the cash receipts journal.

If recording cash takings from sales, for example, you record the amount in the sales column.

This column is a credit column.

By using it, you are showing that a sum of money has come from sales.

At the same time, you record the transaction amount in the bank column.

The bank column is a debit column.
It shows that the money was deposited in the bank.
© R.J. Hickman 2020