Presentation is loading. Please wait.

Presentation is loading. Please wait.

Section 2The Cash Receipts Journal What You’ll Learn  How to record transactions in the cash receipts journal.  How to post from the cash receipts journal.

Similar presentations


Presentation on theme: "Section 2The Cash Receipts Journal What You’ll Learn  How to record transactions in the cash receipts journal.  How to post from the cash receipts journal."— Presentation transcript:

1 Section 2The Cash Receipts Journal What You’ll Learn  How to record transactions in the cash receipts journal.  How to post from the cash receipts journal to accounts receivable subsidiary ledger accounts.  How to post amounts in the General Credit column of the cash receipts journal to general ledger accounts.  How to post column totals from the cash receipts journal to the general ledger.  How to prepare a schedule of accounts receivable. What You’ll Learn  How to record transactions in the cash receipts journal.  How to post from the cash receipts journal to accounts receivable subsidiary ledger accounts.  How to post amounts in the General Credit column of the cash receipts journal to general ledger accounts.  How to post column totals from the cash receipts journal to the general ledger.  How to prepare a schedule of accounts receivable.

2 Why It’s Important Use of the cash receipts journal will save time and reduce errors. Why It’s Important Use of the cash receipts journal will save time and reduce errors. Section 2The Cash Receipts Journal (cont'd.) Key Terms  cash receipts journal  schedule of accounts receivable Key Terms  cash receipts journal  schedule of accounts receivable

3 The Cash Receipts Journal A special journal used to record all cash receipt transactions. The Cash Receipts Journal A special journal used to record all cash receipt transactions. Section 2The Cash Receipts Journal (cont'd.)

4 Recording Cash from Charge Customers Section 2The Cash Receipts Journal (cont'd.) Business Transaction On December 5, On Your Mark received $212 from Casey Klein to apply on account, Receipt 301. JOURNAL ENTRY

5 Section 2The Cash Receipts Journal (cont'd.) Business Transaction On December 12, On Your Mark received $1,470 from South Branch High School Athletics in pay- ment of Sales Slip 51 for $1,500 less the discount of $30, Receipt 302. JOURNAL ENTRY Recording Cash Received on Account, Less a Cash Discount

6 Section 2The Cash Receipts Journal (cont'd.) Business Transaction On December 15, On Your Mark records the cash sales for the first two weeks of December, $3,000, and $180 in related sales taxes, Tape 55. JOURNAL ENTRY Recording Cash Sales

7 Posting to the Accounts Receivable Subsidiary Ledger Daily postings are made from the Accounts Receivable Credit column to the accounts receivable subsidiary ledger. Posting to the Accounts Receivable Subsidiary Ledger Daily postings are made from the Accounts Receivable Credit column to the accounts receivable subsidiary ledger. Section 2The Cash Receipts Journal (cont'd.)

8 Posting the General Credit Column Daily postings are made from the General Credit column of the cash receipts journal to the appropriate accounts in the general ledger. Posting the General Credit Column Daily postings are made from the General Credit column of the cash receipts journal to the appropriate accounts in the general ledger. Section 2The Cash Receipts Journal (cont'd.)

9 Footing, Totaling, Proving, and Ruling the Cash Receipts Journal To complete the cash receipts journal, follow these steps: Footing, Totaling, Proving, and Ruling the Cash Receipts Journal To complete the cash receipts journal, follow these steps: 1. Draw a single rule across the six amount columns, just below the last transaction. 2. Foot the columns. 3. Test for the equality of debits and credits. 1. Draw a single rule across the six amount columns, just below the last transaction. 2. Foot the columns. 3. Test for the equality of debits and credits. Section 2The Cash Receipts Journal (cont'd.)

10 Footing, Totaling, Proving, and Ruling the Cash Receipts Journal (cont'd.) 4.In the Date column, on the line below the single rule, enter the date the journal is being totaled. 5.On the same line in the Account Name column, enter the word “Totals.” 6.Enter the columns totals, in ink, just below the footings. 7.Double-rule the amount columns. 4.In the Date column, on the line below the single rule, enter the date the journal is being totaled. 5.On the same line in the Account Name column, enter the word “Totals.” 6.Enter the columns totals, in ink, just below the footings. 7.Double-rule the amount columns. Section 2The Cash Receipts Journal (cont'd.)

11 Posting Column Totals to the General Ledger  There are six amount columns in the cash receipts journal used by On Your Mark. Only five of the column totals, however, are posted to the general ledger.  The total of the General Credit column is not posted. The entries in this column have already been posted, individually, to the general ledger accounts.  There are six amount columns in the cash receipts journal used by On Your Mark. Only five of the column totals, however, are posted to the general ledger.  The total of the General Credit column is not posted. The entries in this column have already been posted, individually, to the general ledger accounts. Section 2The Cash Receipts Journal (cont'd.)

12 Posting Column Totals to the General Ledger (cont'd.)  The total in each of the other five amount columns is posted to the general ledger account named in the column heading. Section 2The Cash Receipts Journal (cont'd.)

13 Proving the Accounts Receivable Subsidiary Ledger Section 2The Cash Receipts Journal (cont'd.) A schedule of accounts receivable is a report listing each charge customer, the balance in the customer’s account, and the total amount due from all customers.

14 Proving the Accounts Receivable Subsidiary Ledger (cont'd.) Section 2The Cash Receipts Journal (cont'd.)

15 Check Your Understanding What is included in a schedule of accounts receivable? Section 2The Cash Receipts Journal (cont'd.)


Download ppt "Section 2The Cash Receipts Journal What You’ll Learn  How to record transactions in the cash receipts journal.  How to post from the cash receipts journal."

Similar presentations


Ads by Google