and Cash Receipts Journal
There are many different types of sales journals and cash
receipts journals available. To simplify your bookkeeping, we
recommend a combined sales and cash receipts journal. If you are
going to be recording sales and cash receipts manually in a journal,
visit an office supply store. They will have many different
kinds for you to choose from. Look at the different column
headings, and choose the one that best meets the needs of your
business. If you will be using computer software, you probably
won't have to decide which type of journal to use. Your program
will probably have some type of sales and cash receipts journal,
but may allow you to customize it based on your type of
Assume that your business is a retail sales outlet that
extends credit to some customers. Here is an example of a few
entries in a combined sales and cash receipts journal. The
following transactions occurred:
- On February 2, you sold, on credit, $476 worth of goods to
Sandra Shaw. Sales tax on that amount is $24. Since Shaw
owes you a total of $500 (476.00 + 24), your accounts
receivable have increased by that amount.
- Also on February 2, Tamara Dwight paid you her account
balance of $1,359.
- On February 5, several customers bought merchandise for
cash. Total cash sales were $682. On those sales, $34 of
sales tax was collected, adding up to a total of $716 of
cash receipts from your customers.
- On February 6, Sandra Shaw paid her balance of $500.
- Upon completion of this journal page, you should foot
all five amount columns. Since you are using a double-entry
accounting system, you can check to see if all entries
were recorded correctly. Make sure the sum of the debits
equals the sum of the credits.
Total debits: 2,575 + 500 = 3,075. Total credits: 1,859 +
1,158 + 58 = 3,075.
|SALES AND CASH RECEIPTS JOURNAL FOR:
||Sales Tax Payable Credit
||S. Shaw - sale on account
||T. Dwight - received on account
||Daily Cash Sales
||S. Shaw - received on account
If the sum of the debit columns doesn't equal the sum of the
credit columns, you have a problem that you should investigate
right away. You may have recorded one of the amounts in the
wrong column. Maybe you charged the customer the wrong amount.
Or you might have simply added incorrectly when computing the
totals. It is usually easy to pinpoint the error because the
debits should equal the credits for each transaction.
Your sales and cash receipts journal will probably have more
columns than our sample. For example, you could have more than
one column for "Sales" by splitting your sales into
categories. You might have one column labeled "Parts and
Supplies Sales" and another labeled "Service and
Repair Revenue." This could provide you with more
meaningful information. The way you do business might require
additional columns. For example, if you give a discount
to your charge customers who pay within 10 days, you could add a
column labeled "Sales Discounts Dr."