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Documenting also accounting for your business's income remains an important element regarding protecting it from fraud or theft, and that is's particularly true when some business receives a cash payment. Cash can be simply pocketed and diverted without the documents trail that a organization check or other financial instrument creates. Fortunately for business owners, posting any cash receipt on their accounting each time a cash payment remains received creates a permanent record about the payment, helping to guarantee that the cash is properly handled.

Difficulty: Reasonable

Directions. Cash For Junk Cars Houston.

2 Document the amount about cash received in the Cash Debit column inside the Cash Receipts Journal maintained within the accounting method. Balance the transaction by means of posting a credit to either the Sales column, the Accounts Receivable column or another account column from use by way of the business.

3 Submit the amount of cash received whereas any debit with the General Ledger regarding the accounting system. Offset the debit by posting any corresponding credit with the General Ledger under "Sales Credit" or "Other Accounts." If the cash expense is to be applied to Accounts Receivable, post the credit instead to the customer's consideration in the Accounts Receivable Ledger.

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References

San Antonio College: Accounting Evaluate: Cash Receipts Journal University Cram: Cash Receipts Journal