1. Accounting Practices 501 Chapter 4 Cash receipts journal Cathy Saenger, Senior Lecturer, Eastern Institute of Technology © Pearson 2011

2. Cash Receipts Journal Ch4C - CRJ2 This is all about cash received Commission received Interest received Cash from credit customers Cash Sales Dividends received Capital contributed $$$

3. Cash Receipts Journal Ch4C - CRJ3 We will now look at the recording of cash receipts in the Cash receipts journal REMEMBER The sale of goods and servicesGST is collected on : The sale of assets, etc Receipts from Accounts ReceivableNo GST accounted for on : Interest received Capital (cash) contributed, etc

4. Ch4C - CRJ4 Date Cash Receipts Journal DetailsRefBankIncome There are usually 8 columns – good idea to buy a refill of 8-column accounting paper Acc Receiv Interest We could add a Sundry column at the end for those items that do not occur frequently GST collected

5. Ch4C - CRJ5 Date Cash Receipts Journal DetailsRefBankIncome Acc Receiv Interest GST collected As cash flows into the Bank, it will increase and therefore be Debited The other accounts will then be Credited Let’s do a few transactions to check out this journal

6. Ch4C - CRJ6 Date Cash Receipts Journal DetailsRefBankIncome Acc Receiv Interest GST collected We have to account for GST collected on Sales Apr 1 : Cash Sales, $2,300 1Cash Sales 2,3003002,000 2300  23 x 3

7. Ch4C - CRJ7 Date Cash Receipts Journal DetailsRefBankIncome Acc Receiv Interest GST collected Apr 2 : Received $900 from Mrs. A for payment of her account, receipt 88 1Cash Sales 2,3003002,000 We do NOT account for GST, as it had already been accounted for when the Sale took place some time in the past 2Mrs. A 900 88

8. Ch4C - CRJ8 Date Cash Receipts Journal DetailsRefBankIncome Acc Receiv Interest GST collected Apr 3 : Interest received, $360 1Cash Sales 2,3003002,000 We do NOT account for GST, as Interest is exempt of GST 2Mrs. A 900 88 3Interest 360

9. Ch4C - CRJ9 Date Cash Receipts Journal DetailsRefBankIncome Acc Receiv Interest GST collected Apr 4 : Cash Sales, $3,312 1Cash Sales 2,3003002,000 2Mrs. A 900 88 3Interest 360 4Cash Sales 3,312 4322,880 3312  23 x 3

10. Ch4C - CRJ10 Date Cash Receipts Journal DetailsRefBankIncome Acc Receiv Interest GST collected 1Cash Sales 2,3003002,000 2Mrs. A 900 88 3Interest 360 4Cash Sales 3,312 4322,880 We now find the totals of each column $6,872 $732$4,880$900$360

11. Ch4C - CRJ11 Date Cash Receipts Journal DetailsRefBankIncome Acc Receiv Interest GST collected 1Cash Sales 2,3003002,000 2Mrs. A 900 88 3Interest 360 4Cash Sales 3,312 4322,880 $6,872 $732$4,880$900$360 As the Bank increases with the cash that flowed in, the Bank account will be debited with the total All the other accounts will be credited with the totals The individual debtors (Acc Receivable) will be credited with their individual amounts received DrCr

12. Ch4C - CRJ12 Date Cash Receipts Journal DetailsRefBankIncome Acc Receiv Interest GST collected 1Cash Sales 2,3003002,000 2Mrs. A 900 88 3Interest 360 4Cash Sales 3,312 4322,880 $6,872 $732$4,880$900$360 DrCr Let’s do some of the postings to the General Ledger

13. Ch4C - CRJ13 Date General Ledger Details Ref noDrCr Balance BANK 30Cash Receipts6,872Dr CRJ1 6,872 GST Collected 30Cash Receipts732Cr CRJ1 732 Date Cash Receipts Journal DetailsRefBankIncome Acc Receiv Interest GST collected 1Cash Sales 2,3003002,000 2Mrs. A 900 88 3Interest 360 4Cash Sales 3,312 4322,880 $6,872 $732$4,880$900$360 DrCr

14. Ch4C - CRJ14 No more, please!!