Recording Other Cash Receipts
Sometimes, a retail business receives cash from a transaction that does not involve the sale of merchandise. However, since the business is receiving cash, it enters the transaction in the cash receipts journal.
For example, consider this transaction: on January 16 Olympic sportswear company sold unused office equipment worth $60 to Mark Anthony, an employee.
These are the steps to enter this business transaction in the cash receipts journal:
Step 1: Enter the date of the receipt in the Date column.
Step 2: Enter an R and the receipt number in the Document Number column.
Step 3: Enter Office Equipment in the Account Name column.
Step 4: Enter the amount of the credit in the General Credit column. Use the General Credit column when the credit part of the entry is to an account that does not have a special amount column.
Step 5: Enter the amount of cash received in the Cash in Bank Debit column.
The animation below indicates each step using the corresponding step number.