Cash Receipts Journal
What is a Cash Receipts Journal?
A cash receipts journal is used to record any cash the business receives.
![crj1](https://seeaccountingnow.online/wp-content/uploads/2021/06/crj1.jpg)
How it Works
Before computers, transactions were recorded in a series of journals.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/crj2.jpg)
One of those journals was the cash receipts journal.
![crj1](https://seeaccountingnow.online/wp-content/uploads/2021/06/crj1.jpg)
Typically, a business receives most of its cash from two sources.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/crj4.jpg)
It will receive cash from sales.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/crj5.jpg)
The business will deposit these takings in the bank.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/crj6.jpg)
It will also receive cash from customer payments.
![crj7](https://seeaccountingnow.online/wp-content/uploads/2021/06/crj7.jpg)
Again, the business will deposit this money in the bank.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/crj8.jpg)
To record the receipts, you use the cash receipts journal.
![crj1](https://seeaccountingnow.online/wp-content/uploads/2021/06/crj1.jpg)
If recording cash takings from sales, for example, you record the amount in the sales column.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/crj10.jpg)
This column is a credit column.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/crj11.jpg)
By using it, you are showing that a sum of money has come from sales.
![crj12](https://seeaccountingnow.online/wp-content/uploads/2021/06/crj12.jpg)
At the same time, you record the transaction amount in the bank column.
![crj13](https://seeaccountingnow.online/wp-content/uploads/2021/06/crj13.jpg)
The bank column is a debit column.
![crj14](https://seeaccountingnow.online/wp-content/uploads/2021/06/crj14.jpg)
It shows that the money was deposited in the bank.
![crj15](https://seeaccountingnow.online/wp-content/uploads/2021/06/crj15.jpg)
© R.J. Hickman 2020