1. Chapter 9.1 Accounting for Cash Receipts
Payment Systems – provides a method for people to exchange one value for another. Methods of payment have evolved and include cash, ______, credit cards, __________and _______ or ___________transfers.

2. Methods of Payment
Pros
Cons
Cash
Cheques
Pros
Cons

3. Methods of Payment
Pros
Cons
Credit
Cards
Debit Cards
Pros
Cons

4. Methods of Payment
Direct or Electronic Transfers – money transferred from one account to another, electronically. Examples include paycheques, mortgage payments, bill payments etc.
Pros
Cons

5. Accounting for Cash Receipts
Recall Cash Receipts – funds taken in from business operations and include all items considered to be money. These funds must be carefully controlled and safeguarded. Types of cash receipts include:
____________________– cash receipts summary is prepared to keep track of cheques
__________________– Sales slips = cash in
_________________– POS terminal tracks all credit card & debit card sales for each day.

6. Preparing Cash Proofs
A business must have a system to __________ ________ of cash received during the day.
To prove that the cash amount is accurate, someone must compare the total of the cash counted with the total shown by the cash register. (Subtract the amount of money that they started out with in the cash register – float).
A ___________is an accounting procedure that ________________(source documents) ____________(physical count of cash).

7. Accounting Transaction
If the cash receipts balance to the actual cash the journal entry for cash receipts would look like this:
Dr. Bank
Cr. Sales
Cr. HST Payable
**We have done this before…remember!!!

8. Cash Short or Over
_____________when they deal with cash. If this happens we just record the journal entry for cash receipts an amount of cash short or over like this:
Dr. Bank
Dr. _________________20
Cr. Sales
Cr. HST
The actual amount of cash to put in the bank is only $2625 but we must still make the debits and credits equal therefore we must _______________in the ___________________.

9. Cash Short or Over
At any particular time the balance in the cash short or over account represents either a __________(______________) or an __________(_____________).
The account is placed in the expense section of the chart of accounts because it is ________
_______________ (shortage of cash).

10. Preparing the Business Deposit
Take out a blank deposit slip
Sort money by denomination
Coins are rolled
All cheques are endorsed by the depositor stating “_____________” (security feature)
Deposit slip is completed and must agree with the ___________________________ _________________.
A duplicate deposit slip is stamped by the bank and kept on record by the business.

11. Critical Thinking Questions
As a business what form of payment would you prefer? Cash, cheque, credit card or debit card? As a customer, what form of payment would you prefer to use? Why?
Why would the cash short/over account normally have a debit balance (be short)?